The world’s largest contract chipmaker, TSMC, is preparing to raise the prices it charges customers for producing chips by as much as 10%, with the new rates taking effect in 2027, according to a report published Tuesday by Nikkei Asia, which cited multiple sources familiar with the matter.
According to the report, the planned increases are driven by rising costs in several areas, including raw materials, manufacturing equipment, and the construction of new facilities outside of Taiwan.
The price hikes are not uniform across the board. Depending on the specific customer and the type of product being made, base price increases are expected to fall somewhere between 5% and 10%, the report said.
Older chip technologies — specifically those using 12-nanometer, 16-nanometer, and 28-nanometer production processes, known as mature-node production — are facing the steepest increases, with prices potentially climbing as much as 10%.
Nikkei Asia reported that discussions between TSMC and its customers began in June and wrapped up in July, with the updated pricing scheduled to go into effect at the start of 2027.
When reached for comment by Reuters, a company spokesperson declined to discuss specific pricing details, but offered this statement: “Our pricing strategy is strategic, not opportunistic. We will continue to work closely with customers and sell our value to them.”
TSMC’s CEO C.C. Wei had previously signaled in June that he was interested in raising prices, while also indicating the company would avoid the kind of sudden, sharp increases that some memory chip manufacturers have implemented.
