TSMC to raise chipmaking prices by up to 10% in 2027, Nikkei Asia reports
The Taiwanese chipmaker is raising prices to cover higher materials, equipment and power costs as AI demand and overseas expansion strain capacity.
- Taiwan Semiconductor Manufacturing finalized base-price hikes of 5% to 10% this month while discussing potential 10% increases for next year, the Nikkei reported.
- Soaring costs for materials, equipment, and power, compounded by Middle East conflict-related supply chain disruptions, have prompted TSMC to adjust pricing and sustain operations.
- To meet demand from Nvidia and Apple Inc, TSMC raised annual spending projections this year, funding its US$265 billion expansion in Arizona.
- Chief executive officer C.C. Wei told analysts last Thursday that pricing is strategic, stating, "We earn our value and we make sure that our profit, our gross margin is enough for our long-term sustained expansion."
- TSMC is postponing price hikes until next year to provide customers time to adjust, though the firm continues facing challenges fulfilling all customer orders.
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