TSMC plans to raise prices for its chip manufacturing services by up to 10% starting in early 2027. The increase applies to both advanced processes, such as 7nm and below, as well as mature nodes like 12nm, 16nm, and 28nm, reflecting rising costs across its production chain [1, 2, 3, 4].
Negotiations on the price hikes began in June 2026 and were finalized by July 2026 to provide customers with sufficient transition time, contrasting with some industry peers who implemented earlier increases within 2026 [2, 3, 4, 5]. The new pricing will take effect in early January 2027 [2, 3, 4, 5].
Advanced chip manufacturing accounted for approximately 77% of TSMC's revenue in the second quarter of 2026, while mature processes made up around 23%. The prices for mature process products will also increase, although some will see less than the full 10% rise [2, 3, 4, 5].
For high-performance computing (HPC) chip orders that exceed original forecasts, TSMC will apply an additional 10% to 15% premium on top of the base price increase, causing some advanced process orders to see total increases above 10% [2, 3, 4, 5].
Key customers involved in the discussions include Nvidia, Apple, Google, Amazon, Qualcomm, Arm, and MediaTek [2, 4]. According to TSMC’s CFO Huang Renzhao, ongoing overseas factory expansions and the ramp-up of 2nm production capacity will continue to pressure the company’s gross margins [2, 4].
TSMC Chairman Wei Zhejia emphasized a moderate approach to price adjustments. He said the company would not sharply increase prices as memory chip makers with gross margins exceeding 80% have done. "We will not suddenly raise prices by four or five times... such a sharp hike would hurt customer survival," Wei stated. He added, "Although we envy the 86% gross margin of memory vendors, TSMC will not follow their model of rapid, large price increases" [2, 4].
TSMC declined to provide detailed comments on pricing but said its pricing strategy is long-term and strategic rather than opportunistic. A company spokesperson said, "Our pricing strategy is strategic, not speculative. We will continue close cooperation with clients and demonstrate our value." The company reiterated this stance in a public statement [6, 7].
The price increase comes amid rising costs for raw materials, chemicals, labor, logistics, and equipment affecting semiconductor manufacturers worldwide [2, 4]. The announcement prompted a positive market response, with TSMC’s American Depositary Receipts (ADR) rising about 4% in U.S. pre-market trading [3, 5].
