Taiwan Semiconductor Manufacturing Company (TSMC) has announced plans to raise its prices by between five and 10 percent starting in 2027, with premiums of 10 to 15 percent for high-performance computing chips not covered in original forecasts. The increase, affecting services like TSMC's 7nm and more advanced fabrication processes, is attributed to escalating material costs and significant investments in new overseas fabrication facilities, including its upcoming 2nm fab in Arizona.
Despite the planned price adjustment, TSMC leadership stated that the company would not follow the aggressive pricing strategies seen in the memory chip sector. C.C. Wei, TSMC's Chairman and CEO, acknowledged being "jealous" of the higher margins enjoyed by memory chipmakers but emphasized that a sudden, substantial price increase of "four to five times" would be unsustainable for its clients. The company's philosophy, according to Wei, is to earn value and maintain gross margins sufficient for long-term expansion, benefiting both TSMC and its customers.
The semiconductor foundry market, which TSMC dominates with over 70 percent global share, will likely see these price hikes passed down to major technology firms. This move comes amid a broader trend of increasing component costs. Earlier this year, AMD reportedly considered raising prices for GPU and VRAM bundles, and both AMD and Intel increased CPU prices in March. On the consumer-facing side, Apple has also adjusted Mac and iPad prices, citing unprecedentedly rapid and significant component price increases. Industry professionals, including those at Valve, have expressed concerns about the escalating costs, with SK hynix chairman Chey Tae-won noting that memory prices are "abnormally high" and that there are limits to further increases.