## Introduction Chinese chipmaker SMIC has announced today a 10% increase in wafer prices, a crucial component for chip production. This decision is being taken in response to the strong demand of memory and logic chips by Chinese customers who are building inventories. ## Technical context The semiconductor industry has been heavily impacted by geopolitical restrictions and COVID-19 pandemic, but now it's coming back to growth. The demand for memory and logic chips has increased significantly in response to the growing need for smart devices such as smartphones and computers. ## Economic implications The increase in wafer prices may have significant implications for the semiconductor industry. Chip production requires large quantities of wafers, which are expensive to produce and distribute. ## Conclusion In summary, the SMIC's 10% increase in wafer prices is a response to the strong demand of memory and logic chips in China. This decision may have a significant impact on the semiconductor industry and customers who rely on these essential components.