Taiwan Semiconductor Manufacturing NYSE:TSM rose 3.73% premarket after Nikkei Asia reported the contract chipmaker is preparing to raise prices by as much as 10% in 2027. Multiple sources told the publication the increases would apply to both advanced and mature chip production, with the base price rising between 5% and 10%.
TSMC is absorbing higher prices for materials, manufacturing equipment and power, alongside the expense of building new plants overseas. Passing that through would protect margins at a company whose customers include Nvidia NASDAQ:NVDA and Apple NASDAQ:AAPL, both of which depend on TSMC for their most advanced silicon and have limited alternatives.
The reported move follows a bullish set of results this month, when TSMC lifted both its spending and revenue projections for 2026 on the strength of AI and data center demand it expects to continue into 2027. TSMC hasn't confirmed the pricing discussions.