TSMC to raise chipmaking prices by up to 10% from 2027
TSMC plans to raise chipmaking prices by up to 10% from 2027, according to two sources familiar with the matter.
Source: The Star · July 23, 2026 at 1:02 AM · AI-assisted report
CorroboratedKUALA LUMPUR, 23 JULY 2026 —
TSMC, the world's largest contract chipmaker, plans to raise chipmaking prices by up to 10% from 2027, according to two sources familiar with the matter. The price increase is aimed at offsetting rising costs for materials, manufacturing equipment, and overseas plant construction. The move is set to affect both mature-node and advanced-node production, with the base price increases ranging from 5% to 10%, depending on the customer and product.
Market Impact
The history of the chipmaking 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 chips, driven by the growth of technologies such as artificial intelligence, 5G, and the Internet of Things. However, the industry has also faced challenges such as rising production costs, supply chain disruptions, and increasing competition.
TSMC, as a leading player in the industry, has been navigating these challenges while maintaining its position as a major supplier of chips to top technology companies.
The current development in TSMC's pricing strategy is a significant one, as it will impact the company's customers and the broader industry. According to the sources, negotiations for the price increase began in June and concluded in July, with the new pricing set to take effect at the start of 2027. The price increase will affect both mature-node production, which includes 12-nanometre, 16-nm, and 28-nm technologies, and advanced-node production, which includes technologies under 6-nm.
TSMC's CEO, C.C. Wei, had previously indicated that the company would consider hiking prices, but would refrain from abrupt price hikes.
In Malaysia, the impact of TSMC's price increase will likely be felt by local technology companies that rely on the company's chips for their products. The Malaysian electronics industry is a significant contributor to the country's economy, and any changes in the global chip market can have a ripple effect on the local industry.
The sector-specific impact of TSMC's price increase will be closely watched by industry analysts and investors. The company's decision to raise prices is seen as a strategic move to maintain its profitability and invest in new technologies. TSMC's recent financial performance has been strong, with the company posting a 77% jump in second-quarter profit to a record high of T$706.6 billion ($22 billion).
The company's ability to maintain its pricing power and navigate the challenges of the industry will be crucial to its continued success.
Looking ahead, the outlook for the chipmaking industry remains uncertain, with factors such as demand fluctuations, supply chain disruptions, and trade tensions continuing to pose risks. However, TSMC's decision to raise prices is seen as a positive move for the company's long-term prospects, as it will allow the company to invest in new technologies and maintain its competitive position in the industry.
As the company continues to navigate the challenges of the industry, its pricing strategy will be closely watched by investors and analysts, and its impact on the Malaysian market will be monitored by local companies and regulators.
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