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.
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