TSMC plans 5% to 10% chip price rises from 2027

TL;DR: TSMC plans to raise chipmaking prices by 5% to 10% from the beginning of 2027, according to Nikkei Asia. The reported increase covers both advanced and mature semiconductors. Nikkei Asia said TSMC finalised client discussions after talks that began in June. The reported reason is higher manufacturing costs for materials, equipment, and power.

TSMC plans to increase base prices for advanced and mature semiconductors by between 5% and 10% from the beginning of 2027, according to a Nikkei Asia report. Nikkei Asia said TSMC discussed the move with customers from June and has now finalised the plan.

Nikkei Asia reported that TSMC made the decision in response to rising manufacturing costs, including materials, equipment, and power resources. The report said TSMC chose to implement the increase in 2027 to give customers time to adjust.

Bloomberg cited comments from TSMC CEO CC Wei earlier this month saying the company does not typically make sudden price increases and instead focuses on maintaining profit and growth margins to support long-term expansion. Mobile World Live reported that TSMC last week pledged an additional $100 billion of US investment by 2030, bringing its total earmarked investment in Arizona to $265 billion. TSMC's main customers include Apple, Nvidia, Amazon, and Alphabet.

Related questions

• When will TSMC's reported chip price increases take effect?
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