DB HiTek raised foundry prices twice this year, with Chinese customers facing 20-30% increases and Korean customers seeing about 10%. Pricing at the same 8-inch fab and BCD process varies based on client profitability.
Chinese IC design firms specializing in power management ICs likely received two price increase notices from the same Korean foundry this year—one in March and another in September, with the second carrying a firmer tone. The sender is DB HiTek, Korea’s largest and one of the world’s leading pure-play 8-inch foundries.
According to information obtained by TheElec on September 28, DB HiTek has already raised foundry prices twice this year, in March and September, with overall increases ranging from approximately 5% to 30%. The real divergence lies in the customers: Chinese clients saw hikes between 20% and 30%, Korean clients were kept to around 10%, and some customers had their prices frozen entirely.
In the first half of this year, the Chinese market accounted for approximately 60% of DB HiTek’s revenue, making it its largest income source; Korea contributed about 12%, comparable to the combined share of the US and Europe. The basis for price adjustments is also reflected in customer financials—after customers’ revenue and profit margins improve, the company issues notices to raise prices. Chinese clients happened to be the group with the most significant profitability improvements this round, while also actively requesting capacity expansion. One industry insider noted that some customers were "essentially writing blank checks demanding the company expand capacity."
Price increases for Korean customers were kept around 10%, attributed by industry observers to weak operational performance among local clients and consideration for long-term relationships with Korea’s fabless industry. Competitor SK keyfoundry also froze prices for some Korean customers. DB HiTek’s official stance is that it has not granted preferential treatment to any specific country or company.
An easily overlooked detail is the notification timeline. DB HiTek informs customers approximately three months in advance, meaning the revenue from this round of price increases will not appear on the books until the fourth quarter of this year or early next year. Prices are negotiated first; the financial statements follow later.
5%–30%
Price increase range for two adjustments this year
Approx. 60%
Revenue share from Chinese customers
6,000 wafers
New monthly capacity added next year
These three figures represent the overall price increase range for DB HiTek’s two adjustments this year, the revenue share contributed by Chinese customers in the first half, and the 200mm monthly capacity it plans to add before next year. The last figure, against an existing total capacity of 154,000 wafers, represents an increase of less than 4%.
The third figure reveals the most realistic aspect of the business today. DB HiTek's current total 200mm capacity is 154,000 wafers per month, with plans to add 6,000 wafers per month at its Sangwoo site in Yeongcheon, Chungcheongbuk-do, by next year. Against a base of 154,000 wafers, this represents an increase of less than 4%.
More specific constraints stem from water. Water usage in the Chungju Reservoir watershed, which supplies the site, has continued to rise, and industrial water shortages have become a practical bottleneck for capacity expansion. The company's response is to expand water recycling facilities at the Sangwoo site. Placing two public statements side by side clarifies the gap: earlier plans projected monthly capacity to reach 190,000 wafers after expanding the Fab 2 cleanroom; however, the expansion figure obtained by TheElec in late September is an addition of only 6,000 wafers by next year. The former is a capacity plan; the latter is the portion that can actually be executed now. There is also no flexibility on the equipment side—delivery times for 8-inch equipment have stretched to 12 to 18 months. Domestically, nearly half of the 8-inch equipment is over ten years old, with lithography and etch tools heavily reliant on the second-hand market. The underlying support for this round of price increases lies on the supply side: demand cannot double within a year, and supply cannot add 10% capacity within a year.
8-inch fabs have never run the most advanced processes; instead, they handle specialty processes of 130nm and above: BCD (Bipolar-CMOS-DMOS), analog and mixed-signal, power management ICs, power discrete devices, super-junction MOSFETs, display drivers, and image sensors. DB HiTek's two fabs are located in Bucheon, Gyeonggi-do (150–350nm) and Yeongcheon, Chungcheongbuk-do (90–180nm), with its BCD platform covering voltage ranges from 5V to 900V.
There is a layer of stratification often overlooked. Image sensors and display drivers, the two largest categories by volume, are precisely migrating to 12-inch platforms—Samsung's 8-inch line utilization is only about 70% because such products are transitioning. What remains on 8-inch and is being contested is the segment where process and cost are highly suited to 8-inch: analog, power, power management, and automotive discrete devices. Forcing these onto 12-inch would significantly increase unit manufacturing costs.
Supply-side contraction is occurring simultaneously. Samsung plans to shut down its 8-inch S7 fab in Gireung in the second half of 2026, reducing monthly capacity from approximately 250,000 wafers to below 200,000. TSMC also plans to cease production at its 8-inch Fab 5 and 6-inch Fab 2 around the end of 2027. TrendForce estimates global 8-inch output will decline by approximately 2.4% year-on-year in 2026, while Sigmaintell projects a 5% reduction in total capacity.
The demand-side push is quantified precisely: an AI server consumes three to five times more power management ICs and power discrete devices than a traditional server. Domestic feedback has been even faster—SMIC raised 8-inch BCD process prices by approximately 10% at the end of 2025, with capacity utilization reaching 93.7% in Q2 this year; Hua Hong Grace Semiconductor’s Q2 utilization hit 102.8%, indicating operation above full capacity.
DB HiTek is also seeking new high-value outlets for its 8-inch capacity. On September 9, the company announced that its 1200V SiC MOSFET process has completed reliability qualification on 8-inch wafers, with mass production planned for 2027. The second-generation process features an on-resistance of 2.5 mΩ·cm², and the third-generation PDK is scheduled for release in November. While this line will contribute limited revenue in the short term, it underscores that the value of the 8-inch platform extends beyond merely migrating more advanced processes.
⚠️ Note
Here is a debatable assessment: DB HiTek’s third price increase this year will materialize, but in the first half of 2027, the revenue contribution from Chinese customers will decline from the 60% tier. The basis is the magnitude of the increase—a 20% to 30% hike is sufficient to divert some BCD and PMIC orders back to 8-inch capacity in mainland China, which is currently the only source of incremental 8-inch capacity globally. The most likely point of failure for this view is if Chinese customers’ revenue share remains stable near or above 60% in Q1 2027, indicating that the price increase has not triggered diversion and that customers prefer paying a premium over re-qualifying production lines.
See you in the comments. If you are a domestic PMIC design company, faced with this 20% to 30% price increase, would you sign a long-term contract to lock in capacity, or place your next part number directly on a domestic 8-inch line?