TSMC Plans Up to 10 Per Cent Chip Price Increase From 2027

The price increase is expected to cover select mature and advanced process technologies as TSMC looks to offset rising manufacturing and overseas expansion costs. 

Taiwan Semiconductor Manufacturing Co. (TSMC) plans to increase the prices of its chipmaking services by as much as 10 per cent from 2027, according to people familiar with the matter.

The price revisions are expected to vary depending on the customer and the technology involved. The sources said that the increase is intended to offset higher costs related to materials, semiconductor manufacturing equipment, and the construction of overseas facilities.

The proposed hike could affect both mature and advanced process technologies. Production using 12-nanometre, 16-nanometre, and 28-nanometre processes could see increases of up to 10 per cent. Some advanced processes below 6 nanometres may also face similar price increases.

According to a report by Nikkei Asia, discussions with customers began in June and were completed in July, with the revised prices expected to take effect at the beginning of 2027.

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TSMC declined to comment specifically on pricing plans. However, a company spokesperson said the chipmaker’s pricing strategy is based on long-term business considerations and that it will continue working with customers to demonstrate the value of its technology.

TSMC chairman and CEO C.C. Wei had indicated in June that the company was considering raising prices, while stressing that it would avoid the sudden price increases seen among some memory chip manufacturers.

The reported pricing move comes as TSMC continues to benefit from strong demand for artificial intelligence chips. Last week, the company reported a 77 per cent year-on-year increase in second-quarter net profit to a record T$706.6 billion (US$22 billion), exceeding market expectations.

The company remains a key indicator of global semiconductor demand, particularly as investment in AI infrastructure continues to accelerate.

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Nikita Kumari
Nikita Kumari
Nikita Kumari is a Journalist at EFY. She decodes deals, investments, and policy shifts, redefining the semiconductor and tech landscape.

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