TSMC plans to raise chip production prices in 2027, with some customers potentially paying around 25% more for additional high-performance computing capacity, according to Nikkei, which cited people familiar with the matter.
The reported increase matters because TSMC sits under much of the modern electronics stack. Apple, AMD, Nvidia and MediaTek are among the customers that rely on the Taiwanese foundry for advanced processors. If the increases land as described, chip buyers will have to absorb the higher costs, pass them on, or do some unpleasant spreadsheet work.
Nikkei reported that TSMC is preparing baseline increases of 5% to 10% for advanced process technologies. TSMC classifies those as 7nm-class manufacturing and below. The exact increase would depend on the node and the customer, according to the report.
The larger number comes from an added surcharge. Customers that want more high-performance computing chip capacity than they originally booked would pay another 10% to 15% on top of the regular increase, Nikkei reported. That is how some orders could approach a 25% hike.
Mature nodes are also in the queue
The reported increases are not limited to the newest manufacturing lines. Nikkei said TSMC also plans to raise prices for mature processes, including 12nm, 16nm and 28nm-class nodes, as well as other older fabrication technologies. Those increases could reach 10%, though some nodes would see smaller moves, according to the report.
Advanced technologies accounted for about 77% of TSMC’s revenue in the second quarter of 2026, while mature nodes made up 23%, according to the figures cited in the report. In practical terms, the reported plan would touch nearly every part of TSMC’s foundry business.
Nikkei said TSMC began discussing the new pricing with customers around June and finished negotiations in July. The company reportedly chose to start the higher rates at the beginning of 2027 rather than impose them immediately, giving customers time to adjust their own pricing and product plans.
The report attributed the price push to heavy demand for AI processors, rising costs for manufacturing tools and materials, and TSMC’s spending on new production capacity. Advanced chipmaking is capital-hungry even before AI customers start fighting over the same wafer starts.
Wei says TSMC avoids sudden jumps
TSMC does not usually spell out its pricing because foundry contracts depend on volume, node and customer relationship. On the company’s earnings call, chief executive C.C. Wei said TSMC was not trying to shock customers with abrupt increases.
“So we do not suddenly increase our price by which I like to have 4x or 5x,” Wei told analysts and investors, according to the transcript quoted in the report. “You cannot survive for that kind of... for your customer to survive for that kind of price increase.”
Wei also compared TSMC’s margins with memory makers, saying, “I am really jealous about memory companies’ 86% gross margin.” He added that TSMC wants margins high enough to support long-term expansion.
TSMC is not the only semiconductor manufacturer raising prices. The report said Vanguard International Semiconductor has raised prices, UMC began increases in July, memory makers have lifted prices significantly, and Intel recently raised prices on client and data center CPUs while citing market demand.
This story draws on original reporting from Tom's Hardware.
