TSMC Reportedly to Raise Foundry Prices by Up to 10% Starting Next Year

Taiwan's TSMC, the world's largest foundry (semiconductor contract manufacturing) company, plans to raise its semiconductor contract manufacturing and service prices by up to 10% starting next year, Nikkei Asia reported on the 21st, local time.

According to sources familiar with the matter, TSMC decided to raise contract manufacturing prices for both advanced and mature process chips starting in early 2027 amid the aftermath of rising raw material and equipment prices.

The applicable price hike is known to be around 5% to 10%, depending on the client and product.

For mature process products, including the 12-nanometer (nm), 16nm, and 28nm processes, the company plans to raise prices by up to 10%.

However, the price increase rate for some products is expected to be lower than this.

Mature processes accounted for approximately 23% of revenue in the second quarter (April – June) of this year.

TSMC plans to apply an additional 10% to 15% surcharge on top of the base increase for additional orders of high-performance computing (HPC) chips that exceed demand forecasts.

Consequently, sources noted that the final price increase for some advanced chips could exceed 10%.

Price negotiations reportedly began last month and concluded this month, with the increased prices scheduled to take effect starting in early 2027.

In response to a request for comment from Nikkei Asia, TSMC stated, "TSMC does not comment on pricing," adding, "Our pricing strategy is strategic rather than opportunistic."

It further added, "We will continue to work closely with our customers and provide services at prices that reflect our value."

As inflationary pressures spread through the technology supply chain, prices for various products and services across the semiconductor industry, including fiberglass materials, printed circuit boards (PCBs), and packaging, are rising.

Additionally, following the US-Iran war earlier this year, TSMC had warned of cost increases and supply pressures for semiconductor production gases such as helium due to heightened geopolitical tensions.

TSMC's major clients include global big tech companies such as Nvidia, Apple, Google, Amazon, Qualcomm, Arm, and MediaTek.

(Photo: AP, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.