TSMC to raise chipmaking prices by up to 10% in 2027, Nikkei Asia reports
TSMC is set to raise prices for both advanced and mature chip production services by up to 10% in 2027, Nikkei Asia reported on Tuesday, citing multiple sources.
RSS · July 23, 2026 at 1:02 AM
KUALA LUMPUR, 23 JULY 2026 —
TSMC, the world's largest contract chipmaker, is set to raise prices for both advanced and mature chip production services by up to 10% in 2027, according to a report by Nikkei Asia, citing multiple sources. The price increase is aimed at offsetting rising costs for materials, manufacturing equipment, and overseas plant construction. The move is expected to impact the company's customers, including major technology firms, and may have a ripple effect on the global semiconductor industry.
Market Impact
The history of the semiconductor industry has been marked by fluctuations in demand and supply, leading to price volatility. In recent years, the industry has experienced a surge in demand for advanced chips, driven by the growth of artificial intelligence, 5G, and other emerging technologies. TSMC, as a leading player in the industry, has been at the forefront of this trend, investing heavily in research and development to stay ahead of the curve. However, the company has also faced increasing costs, including rising material and equipment expenses, which have put pressure on its profit margins. The planned price increase is seen as a strategic move to maintain the company's profitability and competitiveness in the market.
According to sources, the price increase will affect both mature-node and advanced-node production. Mature-node production, which includes 12-nanometre, 16-nm, and 28-nm technologies, will see price increases of up to 10%. Advanced-node production, which includes technologies under 6-nm, will also face increases of up to 10%. The new pricing is set to take effect at the start of 2027, following negotiations that began in June and concluded in July. TSMC's CEO, C.C. Wei, had hinted at the possibility of a price hike in June, stating that the company would refrain from abrupt price hikes, but would instead implement a strategic price increase.
The price increase is expected to have an impact on the Malaysian market, where TSMC has a significant presence. The company has invested in several manufacturing facilities in the country, and its products are used by many local technology firms. The price increase may lead to higher costs for these firms, which could potentially affect their profitability and competitiveness. However, the impact is expected to be limited, as many of these firms have already factored in the possibility of a price increase into their business plans. Details on how the price increase will affect specific Malaysian companies are not yet available.
In terms of sector-specific impact, the price increase is expected to affect companies that rely heavily on TSMC's chip production services. These include major technology firms such as Apple, Qualcomm, and MediaTek, which use TSMC's advanced chips in their products. The price increase may lead to higher costs for these companies, which could potentially affect their profit margins. However, many of these companies have already factored in the possibility of a price increase into their business plans, and are expected to absorb the cost without significant disruption. TSMC's recent financial results, which showed a 77% jump in second-quarter profit, suggest that the company is well-positioned to maintain its market leadership despite the planned price increase.
Looking ahead, the price increase is expected to have a limited impact on TSMC's long-term growth prospects. The company's strong financial performance, combined with its strategic pricing strategy, is expected to maintain its competitiveness in the market. However, the company will need to continue to invest in research and development to stay ahead of the curve, and to address the increasing costs and complexities of advanced chip production. With the price increase set to take effect in 2027, TSMC is expected to continue to play a leading role in the global semiconductor industry, driving innovation and growth in the years to come. Details on the company's future plans and strategies are not yet available, but are expected to be announced in the coming months.
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