TSMC is preparing to raise its chipmaking prices by up to 10% starting in 2027. The price hikes will apply to both advanced and mature production nodes as the company seeks to offset rising costs for materials and overseas plant construction. Shares of the chipmaker rose 3.73% in premarket trading following the news.
The decision to pass rising expenses down to customers will help protect profit margins at the world largest contract chipmaker. Big tech companies like Nvidia and Apple depend on the foundry for their most advanced silicon and have very few alternatives. By adjusting prices, the manufacturer is transferring the financial weight of expensive equipment and rising power bills directly to its buyers.
According to a report from Nikkei Asia, the base price increases will range from 5% to 10% depending on the specific customer and product. Mature node production covering 12 nm, 16 nm, and 28 nm technologies will face the steepest adjustments of up to 10%. These negotiations reportedly began in June and wrapped up in July, leaving clients with several months to prepare before the new rates take effect at the start of 2027.
While the chipmaker officially declined to comment on the pricing discussions, representatives noted that their pricing strategy remains strategic rather than opportunistic
. Company CEO C C Wei previously expressed a desire to adjust pricing to reflect value
without imposing the sudden jumps seen in the memory sector. The reports of these negotiations arrive shortly after the company posted a massive 77% jump in second quarter profit, reaching a record high equivalent to $22 billion.
