TSMC May Raise Chip Prices Up to 10% in 2027
According to multiple industry sources, Taiwan Semiconductor Manufacturing Co. (TSMC) is planning to raise prices for both advanced and mature-node foundry services by as much as 10% beginning in 2027, reflecting rising costs for raw materials, semiconductor manufacturing equipment, and overseas fab expansion.
The company has reportedly entered pricing negotiations with customers covering a broad range of process technologies, including advanced nodes of 7nm and below. These leading-edge technologies accounted for approximately 77% of TSMC's revenue during the second quarter of 2026 (April–June).
Sources familiar with the discussions said the base price increase is expected to range between 5% and 10%, depending on the customer and product portfolio.
For high-performance computing (HPC) chips, TSMC is also expected to introduce an additional 10% to 15% premium on urgent or incremental orders that exceed customers' original demand forecasts. As a result, total pricing increases for certain high-end AI and HPC products could exceed 10%.
The reported pricing adjustments also extend to mature manufacturing processes, including 12nm, 16nm, 28nm, and other legacy nodes. While some products could see increases of up to 10%, others are expected to experience smaller adjustments. Mature-node technologies contributed roughly 23% of TSMC's revenue in the previous quarter.
Industry sources indicated that pricing negotiations began around June 2026, were largely finalized in July, and the revised pricing structure is expected to take effect in early 2027.
Although smaller process nodes generally deliver higher transistor density, improved performance, and greater power efficiency, mature-node technologies remain essential for a wide range of electronic applications, including power management ICs, sensors, automotive electronics, industrial systems, and embedded devices.
TSMC's customer base includes many of the world's leading semiconductor companies, such as NVIDIA, Apple, Google, Amazon, Qualcomm, Arm, and MediaTek.
According to industry executives familiar with TSMC's pricing strategy, the company has adopted a relatively measured approach. Rather than implementing immediate increases, TSMC reportedly chose to delay the new pricing until 2027, giving customers additional time to complete negotiations and adjust production planning.
The reported price adjustment follows a broader industry trend in 2026, as semiconductor manufacturers responded to higher labor, material, chemical, energy, and logistics costs. Earlier this year, Intel and AMD also reportedly raised prices for certain processors amid strong demand driven by AI computing. Other foundries, including Vanguard International Semiconductor (VIS), have already implemented price increases, while United Microelectronics Corp. (UMC) began adjusting pricing in July to reflect higher operating costs.
Inflationary pressures have continued to spread across the semiconductor supply chain, affecting products and services ranging from glass fiber materials and printed circuit boards (PCBs) to laser components, semiconductor packaging, and manufacturing services. At the same time, record global investment in AI infrastructure has intensified demand for memory, contributing to tight supplies of both DRAM and NAND flash.
TSMC has also previously warned that geopolitical tensions could place additional pressure on critical industrial gas supplies and further increase manufacturing costs.
The company's Chief Financial Officer, Wendell Huang, has stated that continued expansion of overseas wafer fabrication facilities, together with the production ramp of advanced 2nm technology, will continue to place pressure on profit margins. TSMC has announced an additional US$100 billion investment in Arizona and increased its 2026 capital expenditure plan to as much as US$64 billion.
TSMC Chairman C.C. Wei has previously discussed the company's long-term pricing philosophy, noting that while memory manufacturers may achieve exceptionally high gross margins during market upcycles, TSMC does not intend to implement dramatic price hikes.
"We create value through technology and manufacturing excellence while maintaining profit margins that support our long-term sustainable growth," Wei said. "That approach benefits both our customers and TSMC."
Responding to reports of the planned price increases, TSMC stated:
"TSMC does not comment on pricing. Our pricing strategy is strategic rather than opportunistic. We will continue working closely with our customers to create value together."
