TSMC to Raise U.S. Chip Prices by 30% Amid Surge in Orders

According to a report by Taiwan-based Digitimes, several leading U.S. technology companies—including Apple, AMD, and NVIDIA—are ramping up production at TSMC's Arizona wafer fabrication facility in response to ongoing geopolitical tensions and potential semiconductor tariffs under the Trump administration's trade policies. This surge in demand is now placing significant pressure on TSMC's production capacity, prompting speculation of a potential 30% increase in contract manufacturing prices.

TSMC's Arizona Fab 21, which is currently focused on 4nm process technology, is reportedly experiencing a growing queue for capacity as customer orders accelerate. In an effort to offset the high operational costs associated with U.S.-based production, TSMC is said to be considering a price adjustment of up to 30%. This move could help mitigate financial losses from its U.S. operations.

Key clients of TSMC's U.S. fab include major American companies such as Apple, AMD, and NVIDIA. On April 14, NVIDIA confirmed that its next-generation Blackwell chips—based on TSMC's 4nm process—have entered production at the Arizona facility. NVIDIA is also collaborating with advanced packaging and testing partners including Amkor Technology and SPIL (Siliconware Precision Industries) for downstream manufacturing.

Meanwhile, large-scale EMS manufacturers are also expanding their footprint in the U.S. Foxconn's Houston facility and Wistron's Dallas site are expected to begin mass production of AI servers within the next 12 to 15 months.

Over the next four years, NVIDIA aims to jointly produce up to $500 billion worth of AI infrastructure in the United States through strategic collaborations with TSMC, Foxconn, Wistron, Amkor, and SPIL.

AMD announced on April 15 that its fifth-generation EPYC server processors are now being manufactured at TSMC's Arizona fab. The upcoming sixth-generation "Venice" processors, scheduled for release in 2026, will be the first to utilize TSMC's advanced 2nm process and have already completed the tape-out stage. In a recent interview, AMD CEO Dr. Lisa Su emphasized the company's intention to scale up domestic production of AI server chips.

Currently, TSMC's monthly production capacity at its Arizona Fab 21 is estimated to be between 20,000 to 30,000 wafers. While the company is accelerating its expansion, the surge in customer demand has made a price adjustment inevitable.

Despite the fab entering mass production, there is still a shortfall in local advanced packaging and testing capabilities. While earlier plans involved collaboration with Amkor's new U.S. facility, TSMC has since announced a $100 billion investment to expand its operations in the U.S.—which includes building two state-of-the-art packaging plants.

In response to robust demand, TSMC is reportedly moving up the production timeline for its second Arizona fab by one year. The company also plans to introduce cutting-edge fan-out panel-level packaging (FOPLP) technology at its U.S. sites, further enhancing supply chain flexibility and meeting the growing need for fully U.S.-based chip manufacturing.