Semiconductor Demand Surges, Driving Upstream Pricing Power and Increased Capital Budgets

Major global chipmakers, including TSMC, Intel, SK Hynix, and Samsung, are significantly increasing their 2026 capital expenditures, with TSMC raising its plan to $60-64 billion. This surge in demand, particularly for advanced production capacity, is shifting pricing power towards upstream equipment and materials suppliers, indicating a strong and accelerating market.