TSMC in Talks to Raise Prices by Up to 10% in 2027, Report Says

TSMC in Talks to Raise Prices Up to 10% Next Year: Nikkei

Taiwan Semiconductor Manufacturing Co. has held discussions with clients about chipmaking price increases of as much as 10% in 2027 to cover the rising cost of manufacturing, the Nikkei reported, citing people with knowledge of the matter.

The main producer for Nvidia Corp. and Apple Inc. began those talks in June and finalized base-price hikes this month of between 5% and 10%, the newspaper reported. The changes will take effect next year and cover both advanced and mature semiconductors, the Nikkei said.

TSMC and other chipmakers are grappling with the soaring cost of a plethora of items employed in production including materials, equipment and power. This month, Taiwan’s largest company raised its spending projections for 2026, anticipating fAI demand as well as the growing cost of expanding capacity — particularly as it proceeds with a $265 billion expansion in Arizona.

TSMC, which fabricates chips for many of the world’s biggest tech names from Alphabet Inc. to Amazon.com Inc., has long resisted the sharp price swings that characterize the adjacent memory chip industry. It’s consistently espoused long-term partnerships with customers through volatile up- and down-cycles. At the same time, global supply chain disruptions from the Middle East conflict and raging AI industry demand are inflating costs and piling pressure on TSMC to accelerate capacity construction around the world.

TSMC is postponing price hikes to 2027 to give its customers time to adjust, the Nikkei said.

Read More: TSMC Hikes Sales, Spending Outlook to Catch AI ‘Megatrend’

“We don’t suddenly increase our price,” Chief Executive Officer C. C. Wei told analysts in July after unveiling better-than-anticipate earnings. “We earn our value and we make sure that our profit, our gross margin is enough for our long-term sustained expansion, that’s to the benefit of my customers and TSMC also, that’s our philosophy.”

Customers like Nvidia have called on TSMC to quicken its pace of expansion, concerned about bottlenecks in the supply of the AI accelerators and other components that go into data centers. In response, TSMC has established mega-projects such as in Arizona — dubbed the largest-ever foreign direct investment in the US.

The company, fresh off reporting expectation-beating sales and profit for the June quarter and increasing its growth forecasts, still sees challenges in fulfilling all customer orders. The artificial intelligence megatrend, as TSMC has taken to calling it, is going to drive growth for the company through at least the next few years.

“Our pricing strategy is strategic, not opportunistic. We will continue to work closely with customers and sell our value to them,” TSMC said in a statement Tuesday.

Read More: TSMC’s $265 Billion US Spend Driven by Demand, Rivals, CFO Says