Core Viewpoint - The semiconductor industry is expected to experience significant price increases and shortages by 2026, driven by supply chain constraints and rising demand, particularly in AI applications [1][14]. Group 1: Material Shortages and Price Increases - Silicon oxide is facing a supply gap of 40%, with a shortage of 1.5 million wafers this year and prices increasing by over 50%, expected to remain in short supply until 2028 [4][5]. - Molybdenum, essential for semiconductor targets, has seen an 80% price increase due to a shortage of 12,000 tons, with expectations of continued shortages until 2027 [6][7]. - Photoresists are experiencing severe supply constraints, with a shortage of 12,000 tons this year and prices doubling, projected to worsen with a 15,000-ton shortage next year [8][9]. - High-end electronic fabrics are in high demand, with a shortage of 50% and prices doubling, expected to last until 2028 [10]. - High Bandwidth Memory (HBM) has been completely sold out for the year, with prices doubling and a 60% supply gap due to high demand from AI chips [11][12]. - Silicon photonic wafers are facing a 40% price increase and a shortage of 800,000 wafers, with supply issues expected to persist until 2027 [13]. Group 2: Market Dynamics and Price Trends - The current price increases are attributed to a combination of raw material shortages, geopolitical factors, and surging AI demand, indicating a significant shift in the market rather than temporary fluctuations [14]. - Major companies like Texas Instruments and Infineon have announced price hikes of up to 85% starting April 1, with domestic firms also increasing prices by 10%-20%, and some up to 80% [15].