GoKawiilTSMC intends to raise base quotes on advanced chip production services by up to 10%, according to Nikkei, which cites people with knowledge of the matter. The price hike reflects increased demand for sophisticated processors by the AI sector, raising costs of tools and materials, as well as amplified investments in new production capacities.
For advanced process technologies — which TSMC considers 7nm-class and below — TSMC plans to raise baseline prices by 5% to 10%, depending on the particular production node and customer, the report claims. Furthermore, customers that need additional HPC chip capacity beyond their original volume requirements will reportedly have to pay another 10% to 15% premium on top of the standard increase, which means that some services will get a price hike of around 25%, if the report is accurate.
TSMC also intends to increase prices for mature manufacturing technologies, including its 12nm, 16nm, and 28nm-class nodes as well as other legacy fabrication technologies, the report claims. Increases could reach 10%, although certain nodes will reportedly see smaller adjustments, according to Nikkei.
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Advanced technologies generated around 77% of the foundry's revenue in Q2 2026, whereas mature nodes accounted for 23%, which essentially means that TSMC is hiking prices on all of its services.
The company reportedly began discussing the new pricing with customers around June and completed negotiations in July. Rather than introducing higher rates immediately, TSMC opted to implement them from the beginning of 2027 to give clients like Apple, AMD, Nvidia, and MediaTek additional time to accommodate the changes and adjust their prices accordingly.
Since TSMC produces the lion's share of advanced processors for AI, HPC, networking, and smartphone applications, its price hikes will inevitably create a ripple effect in the industry and will make almost all electronics more expensive.
TSMC is not alone in raising prices these days. Vanguard International Semiconductor has also raised prices, while UMC began implementing increases in July. Also, memory makers have increased prices significantly, making TSMC management jealous. Intel also recently increased prices of its client and data center CPUs, citing market demand.
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"I am really jealous about memory companies' 86% gross margin," said C.C. Wei, chief executive of TSMC, during the company's earnings call with financial analysts and investors. "86% [margin at memory makers] – 68% [margin at TSMC], I will be happy about that."
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