Apple Silicon supplier TSMC, the world’s largest contract chipmaker, is planning to increase prices for both its cutting-edge and mature chip production services by up to 10% beginning in 2027, according to Nikkei Asia which cites sources familiar with the matter.
The hikes aim to offset surging costs for materials, manufacturing equipment, and the construction of new overseas fabrication plants. Negotiations with clients began around June and were finalized in July, with the new pricing scheduled to take effect at the start of 2027.
For advanced process technologies at the 7-nanometer node and below — which accounted for about 77% of TSMC’s revenue in the most recent April-June quarter — base price increases will range from 5% to 10%, depending on the customer and product. Additional high-performance computing orders exceeding original forecasts could face an extra 10-15% premium, potentially pushing total increases above 10% for some clients.
Mature-node production, including 12nm, 16nm, 28nm and legacy processes (representing roughly 23% of recent revenue), will also see increases of up to 10%, though some products will receive smaller adjustments.
Major TSMC customers include Apple, Nvidia, Google, Amazon, Qualcomm, Arm, and MediaTek. Industry executives noted that the company has taken a relatively measured approach by delaying the increases until 2027, giving clients time to adjust rather than implementing immediate hikes.
This move comes amid broader cost pressures in the semiconductor industry. Many chipmakers have raised prices this year to counter rising expenses for labor, materials, chemicals and logistics. TSMC’s own executives have highlighted the financial strain from overseas fab expansions and the ramp-up of 2-nanometer production. The company recently announced an additional $100 billion investment in Arizona and raised its 2026 capital spending plan to as much as $64 billion.
Responding to Nikkei questions, TSMC declined to comment directly on pricing, but described its strategy as “strategic, not opportunistic.”
MacDailyNews Note: During its July earnings briefing, TSMC Chairman C.C. Wei emphasized a philosophy of sustainable pricing to support long-term growth, stating that the company aims to maintain sufficient gross margins without sudden, drastic increases that could harm customers.
Please help support MacDailyNews — and enjoy subscriber-only articles, comments, chat, and more — by subscribing to our Substack: macdailynews.substack.com. Thank you!
Support MacDailyNews at no extra cost to you by using this link to shop at Amazon.
so instead of doing stupid share buybacks, if apple had invested in the equipment to build processors and ram over the years of plenty apple would not need to use crap chinese ram chips with god knows what programs embedded in the circuitry, or face a 10 percent increase of money going out the door for processors. see this is why tim should move on add go work for donald. and if apple would have built such a facility in america it would have been a nation saving big deal. as you should realize with that extra capacity apple could have made amd, nvidia, intel, google, amazon, facebook processorS.
cook only did one thing since steve, a watch. a watch and abunch of name changes, sound familiar. no, think gulf of america, deparatment of war…
stop the buy backs increase the dividend. i can spend my money better than tim can.