TSMC to Raise Chip Prices by Up to 10% in 2027: Report

Taiwan Semiconductor Manufacturing Co. NYSE:TSM, the chipmaker that produces semiconductors for many of the world's largest technology companies, has reportedly finalized price increases of between 5% and 10% for 2027 as manufacturing costs continue to rise. According to Nikkei, TSMC began discussing the changes with customers in June and completed negotiations over the base-price increases this month. The adjustments are expected to apply to both advanced and mature chips, potentially helping TSMC offset higher spending on materials, manufacturing equipment and electricity. The company is delaying the increases until 2027, which could give customers more time to prepare for the added costs.

TSMC is the main chip producer for NVIDIA NASDAQ:NVDA, a technology company whose AI accelerators are used in data centers, and Apple, one of the world's largest technology companies. Customers such as NVIDIA have encouraged TSMC to expand production more quickly as concerns grow over possible shortages of AI accelerators and other data-center components. TSMC recently raised its 2026 spending projections as it responds to strong artificial intelligence demand and the rising cost of expanding manufacturing capacity. The company is also moving forward with a $265 billion expansion in Arizona, which has been described as the largest foreign direct investment ever made in the United States.

TSMC also manufactures chips for Alphabet and Amazon.com, two major technology companies, making its pricing strategy potentially important across the broader technology and semiconductor sectors. The company recently reported June-quarter sales and profit that exceeded expectations and raised its growth forecasts, although it still faces difficulties meeting every customer order. Management expects the artificial intelligence investment cycle to support TSMC's growth for at least the next several years. Investors may view the planned price increases as a sign that TSMC is seeking to preserve its margins and fund long-term expansion while maintaining what management describes as a strategic rather than opportunistic pricing approach.