TSMC to raise chipmaking prices by up to 10% in 2027, sources say

KUALA LUMPUR, 24 JULY 2026 —

TSMC to Raise Chipmaking Prices by Up to 10% Starting 2027

The move aims to offset rising costs for materials, manufacturing equipment, and overseas plant construction, one of the sources said. Nikkei Asia first reported the price increase plan on Tuesday.

The base price increases will vary depending on the customer and product, with mature-node production—covering 12-nanometre, 16-nm, and 28-nm technologies—facing hikes of up to 10%. Advanced node production, under 6-nm, will also see increases of up to 10%, according to the sources. Negotiations began in June and concluded in July, with new pricing set to take effect at the start of 2027.

TSMC declined to comment on pricing when contacted by Reuters, though a company spokesperson stated, “Our pricing strategy is strategic, not opportunistic. We will continue to work closely with customers and sell our value to them.”

TSMC CEO C.C. Wei previously indicated in June that the company intended to raise prices, emphasizing that it would avoid abrupt hikes similar to those imposed by some memory firms. Last week, TSMC reported a 77% jump in second-quarter profit, reaching a record high of T$706.6 billion ($22 billion), surpassing market expectations.

Background and Industry Context TSMC has long been a dominant player in the global semiconductor industry, supplying chips to major technology firms, including Apple, Nvidia, and AMD. The company’s pricing decisions often set benchmarks for the broader semiconductor foundry sector. Rising costs for advanced manufacturing equipment, materials such as silicon wafers, and energy expenses have pressured profit margins across the industry.

The planned price hike reflects broader trends in the semiconductor supply chain, where manufacturers are grappling with inflationary pressures and geopolitical risks. TSMC’s move follows similar adjustments by other major foundries, though the company has emphasized a measured approach to avoid disrupting long-term customer relationships.

Malaysia’s Semiconductor Market Impact Malaysia plays a significant role in the global semiconductor supply chain, hosting major manufacturing and assembly plants for multinational companies. The country is a key hub for back-end semiconductor activities, including packaging and testing, which are critical to the production of advanced chips.

While TSMC does not operate major fabrication plants in Malaysia, the price increase could indirectly affect local semiconductor firms that rely on TSMC for advanced chip production. Malaysian companies involved in the supply chain, such as those providing materials or equipment, may face higher costs if TSMC passes on expenses to customers.

Additionally, local subsidiaries of global tech firms that source chips from TSMC could see increased production costs, potentially influencing pricing for end products in the Malaysian market.

Sector and Company-Specific Implications TSMC’s pricing adjustment underscores the financial strain on semiconductor manufacturers amid surging demand for AI and high-performance computing chips. The company’s record second-quarter profit highlights strong demand for its advanced-node chips, which are essential for AI applications. However, the need to reinvest in cutting-edge manufacturing technologies and expand capacity has intensified cost pressures.

The price hike could also reflect TSMC’s strategy to prioritize profitability amid rising capital expenditures. The company has been expanding its global footprint, including new plants in the U.S., Japan, and potentially Europe, to mitigate geopolitical risks and secure supply chain resilience. These overseas ventures require substantial investment, further justifying the need for higher prices.

Outlook and Future Considerations The semiconductor industry remains highly cyclical, with pricing adjustments often tied to supply and demand dynamics. TSMC’s move to raise prices could signal a broader trend among foundries to recover costs amid persistent inflation and supply chain challenges. However, the company’s emphasis on strategic pricing suggests it will balance cost recovery with maintaining long-term customer partnerships.

For Malaysia, the indirect impact of TSMC’s price hike will depend on how local firms adapt to higher input costs and whether global tech customers adjust their procurement strategies. Industry analysts will closely monitor whether other foundries follow TSMC’s lead, which could further reshape the competitive landscape.

Related: TSMC