Taiwan chip makers signal durable upcycle as memory prices and AI demand align

The revenue surge among Taiwan, China’s semiconductor firms in May reflects more than a cyclical rebound—it signals a structural shift in tech power dynamics. Soaring AI infrastructure demand and recovering DRAM prices are redirecting upstream equipment and materials toward HBM and CoWoS packaging, squeezing mature-node capacity. Downstream cloud providers, starved for compute, now absorb higher BOM costs, creating a self-reinforcing pricing-demand loop. Compliance pressures from U.S. export controls compel dual-supply chains (Taiwan + overseas), inflating operational complexity and capex. In response, Korean memory leaders may leverage process-node advantages, while mainland Chinese foundries aggressively capture mature-node share. Over the next 18 months, the industry will transition from cyclical recovery to structural prosperity: sustained AI-driven demand not only extends high utilization but redefines global value distribution, granting premium pricing power to those mastering advanced packaging and heterogeneous integration.