TSMC to raise advanced and mature process chip prices by up to 10% from 2027

Pricing plan across nodes

Taiwan Semiconductor Manufacturing Co. has concluded price negotiations with major customers and will apply a new pricing structure starting early next year, with base prices on 7-nanometer and more advanced nodes rising by 5% to 10% depending on customer and product, according to a July 22, 2026 Nikkei Asia report carried by ChosunBiz. The increases include a separate 10% to 15% surcharge on high-performance computing chips when orders exceed originally contracted volumes, which could push effective price hikes on some AI semiconductors past 10%. Mature processes including 12nm, 16nm and 28nm will also rise by up to 10%, with some products seeing smaller adjustments.

The new prices are set to take effect at the beginning of 2027. TSMC began talks with key customers in June and concluded them in July. Major customers cited include Nvidia, Apple, Google, Amazon, Qualcomm, Arm and MediaTek. In a statement carried by Nikkei Asia, the company said it does not disclose pricing policy but framed its approach as creating long-term value with customers rather than acting opportunistically.

Industry-wide pricing moves

The pricing adjustment comes as chipmakers across the supply chain pass through higher costs tied to AI investment. ChosunBiz reported that Intel and AMD have raised prices on AI server semiconductors, while TSMC-affiliate VIS and Taiwan's United Microelectronics Corp. have also lifted prices citing rising costs. Industry analysts cited in the same report link the trend to AI data-center buildouts driving up prices of glass fiber, printed circuit boards, advanced packaging and DRAM and NAND flash memory.

Overseas buildout and capex burden

TSMC's CFO Wendell Huang acknowledged at a recent earnings briefing that expansion of the company's Arizona facilities and the ramp of 2-nanometer production will weigh on profitability in the near term, according to the ChosunBiz report. The company raised its Arizona investment by $100 billion beyond the original plan and lifted 2026 capital expenditure to a maximum of $64 billion. A separate industry summary published on the same date placed the cumulative Arizona commitment at $265 billion after the latest revision.

Chairman Wei Zhejia said the company will not raise prices by four to five times in a single move, describing its principle as securing reasonable returns at a level that allows customers to grow alongside it over the long term. Industry observers cited in the ChosunBiz report characterized the adjustments as more measured than market expectations, noting that deferring the increase to next year gives customers time to adjust production plans and product pricing.

Green-power pressure from end customers

Separately, TSMC and the broader Taiwan semiconductor supply chain are facing mounting pressure to secure sufficient green electricity as Apple and Google push suppliers to meet net-zero requirements, according to a July 22, 2026 Digitimes report from Taipei. The strain is described as rippling from end customers through foundries such as TSMC to upstream suppliers, raising fresh questions about the pace at which Taiwan's chip industry can decarbonize while expanding capacity for AI customers.