TSMC Sets 2027 Full-Price Hike! Overseas Plant Depreciation and Rising Costs Double Pressure, Price Increases Up to 10%

Global semiconductor foundry leader Taiwan Semiconductor Manufacturing Company (TSMC) is reportedly set to implement a new round of comprehensive price adjustments in 2027. According to Nikkei Asia, citing multiple sources, TSMC has begun negotiations with major clients to raise pricing across both advanced and mature manufacturing processes starting in 2027, with increases reaching up to 10%. This move aims to address rising raw material costs, escalating semiconductor manufacturing equipment prices, and depreciation pressures from newly built overseas wafer fabs.

Sources indicate that price negotiations began in June and were finalized in July, with the new pricing set to take effect at the beginning of 2027. For advanced processes (including 7nm and more advanced nodes), the base price increase will range between 5% and 10%, with actual adjustments depending on customer collaboration scale and product lines.

Notably, for high-performance computing (HPC) customers placing additional orders beyond initial forecasts, TSMC plans to impose an extra 10–15% surcharge on top of the base increase. This means that for certain high-demand advanced chip orders, the total price hike could exceed 10%. Advanced processes currently contribute approximately 77% of TSMC’s total group revenue.

End of Mature Process Price Freeze

In addition to cutting-edge technologies, mature processes—accounting for 23% of TSMC’s revenue (including traditional nodes like 12nm, 16nm, and 28nm)—will also see price adjustments, with maximum increases also reaching up to 10%, though some products may see lower adjustments. While mature processes do not attract as much attention as 2nm or 3nm nodes, they produce essential components such as power management ICs (PMICs) and sensors, which remain critical for global consumer electronics and automotive electronics.

TSMC’s key customers include global top-tier IC design companies such as NVIDIA, Apple, Google, Amazon, Qualcomm, Arm, and MediaTek. Industry executives analyze that TSMC’s adoption of a “relatively moderate” pricing strategy—delaying the increase until 2027 rather than implementing it immediately—aims to give major clients ample time to adjust product budgets and supply chain planning.

In fact, the entire semiconductor supply chain has seen rising prices throughout 2026, with companies like Intel, AMD, Vanguard International Semiconductor, and UMC also raising prices in response to increasing labor, raw material, and logistics costs. Amid rising geopolitical tensions in the Middle East, TSMC has already warned of additional pressures on critical gas supplies and operational costs.

Yang Ming Chiao Tung University Launches Third-Semester Semiconductor Special Program

In response to the rapid development of the semiconductor industry and rising demand for high-level talent, Yang Ming Chiao Tung University has partnered with TSMC to cultivate talent, launching a third-semester semiconductor special course during summer break to help students gain early exposure to semiconductor knowledge and technology. (Provided by Yang Ming Chiao Tung University) CNA reporter Hsu Chi-wei, June 15, 2026

TSMC CFO Huang Ching-wei revealed during the July earnings call that the continuous expansion of overseas facilities, such as in Arizona, USA, along with initial depreciation from the 2nm process mass production, will continue to exert pressure on the company’s gross margin. Chairman Mark Liu emphasized that TSMC will not follow memory manufacturers in sudden, multiple-fold price surges. Instead, the company’s pricing strategy is strategic rather than speculative. According to Liu, TSMC aims to earn value for the value it creates, ensuring an appropriate gross margin to sustain long-term, scalable capacity expansion—a win-win for both customers and TSMC itself.