IC designers are preparing price increases ranging from 5% to double-digit percentages, targeted for late 2026 through early 2027, in response to rising foundry costs, TrendForce reports.

The planned hikes follow cost pressure at wafer manufacturing level, which chip design houses now intend to pass downstream to their customers. The reported range — starting at 5% and reaching into double digits — signals that design firms expect sustained foundry pricing power through the second half of the decade.

What is driving the increases?

Foundry cost escalation sits at the center of the decision. As contract chipmakers raise their wafer and packaging prices, IC designers face compressed margins unless they adjust their own pricing. Rather than absorbing the additional cost, design houses reportedly plan to push a portion of it to OEMs and end-product manufacturers.

The timing — late 2026 into early 2027 — suggests designers are negotiating now with foundry partners and customers to lock in new price structures before the increases take effect. A staggered rollout across that window would also spread the adjustment across contract renewal cycles.

How large could the hikes be?

The reported range covers two distinct scenarios:

• Baseline case: increases of approximately 5%, applied to product lines where competitive pressure limits pricing flexibility
• Upper case: double-digit percentage increases, where demand strength or product scarcity gives designers more pricing leverage

The spread between the two cases indicates that the final figure will likely vary by product category, customer relationship and supply conditions rather than applying as a uniform increase.

Who bears the cost?

Each link in the semiconductor supply chain faces a decision on how much of the foundry increase to absorb. Design houses choosing to raise prices by 5% or more are effectively answering that question: they intend to transfer the cost downstream.

That places the next decision with system manufacturers and OEMs, who must choose between accepting thinner margins or raising end-product prices. The late-2026 to early-2027 window gives the electronics industry roughly a year to adjust procurement strategies, qualify alternative suppliers, or renegotiate volume agreements before the new prices land.

What happens next?

Watch for confirmation from individual IC design firms as their 2026 contract negotiations conclude. The specific percentage each company applies — whether at the 5% floor or in double-digit territory — will reveal how much pricing power designers believe they hold against their own customers, and how much of the foundry cost surge the market will ultimately tolerate.

The timing also matters for product planning. Chips priced under new terms from late 2026 onward will feed into devices reaching the market in 2027 and beyond, meaning the foundry cost increases of today will surface in end-product pricing with a lag of several quarters.