Planned 2027 wafer price increases
TSMC has notified major customers including Apple, Nvidia, and AMD of a planned 5% to 10% increase in wafer manufacturing fees for 2027, covering both advanced and mature process nodes, with negotiations on the revised rates concluding in July. In addition to the base increase, an extra 10% to 15% premium will apply to high-performance computing capacity that exceeds original customer commitments, lifting the total increase on some advanced nodes well above 10%. The company has framed the pricing adjustment as a strategic response to higher raw material, equipment, and global fab expansion costs, though TSMC declined to comment directly on the specific pricing report.
Arizona expansion accelerates with $100 billion commitment
TSMC is accelerating its Arizona factory build-out with an additional $100 billion investment targeting 12 facilities, with mass production of the company's 1.4-nanometre node set to begin in 2028. The expansion comes as TSMC's long-running Arizona buildout, first announced in 2020, moves past initial hurdles after five years of construction into a new phase covering both fabs and advanced packaging. Industry reporting describes the project as aiming to produce more than 15 billion US-made chips. The Arizona investment is part of a broader US commitment reported at $200 billion and a larger 2026 capital spending programme.
Q2 2026 financial results
TSMC's consolidated second-quarter 2026 revenue reached $40.20 billion, a 36% year-on-year increase, while net income surged 77.4% to $22.37 billion. Advanced technologies, defined as 7-nanometre and below, accounted for 77% of total wafer revenue in the quarter. The results contributed to the company lifting its 2026 revenue growth outlook to more than 40%, citing robust AI demand and a quicker-than-expected ramp in 2-nanometre production. S&P Global Market Intelligence said the Q2 revenue beat expectations and analysts raised full-year forecasts on the strength of AI-related demand in advanced manufacturing.
Share price movement and analyst outlook
TSMC's shares slipped 1.4% to around $415.36 in trading on 23 July 2026, even as the company continued to benefit from strong AI hardware demand. The pullback came against a backdrop of investor concern over the company's heavy capital expenditure programme, which some analysts said could squeeze near-term margins and trim free cash flow expectations. Despite the cautious tone, Wall Street maintains a consensus Strong Buy rating with an average price target of $497.77, while the stock has rallied 39% year-to-date in 2026, significantly outperforming the S&P 500.
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