TSMC Reportedly Planning 'Across-the-Board Price Hike' in 2027! Advanced and Mature Processes Affected, Up to 10% Increase

TSMC, the world's leading semiconductor foundry, has confirmed it is considering price increases, with Chairman Mark Liu stating during the June shareholder meeting that the company is actively reviewing its pricing strategy. Recent reports indicate that TSMC will raise prices for all processes below 7nm. According to a new report from Nikkei Asia, two sources familiar with the matter revealed that TSMC has formally planned a foundry price hike set to take effect in 2027, with increases of up to 10%.

The Nikkei Asia report states that TSMC began negotiating new pricing with customers in June 2024, completing discussions by July. The new pricing structure is expected to take effect at the beginning of 2027.

The price increases will not be limited to advanced processes below 6nm. Mature processes such as 12nm, 16nm, and 28nm will also be affected. The actual increase will vary by process node and customer, ranging from 5% to 10% depending on specific agreements.

In response to the reports, a TSMC spokesperson emphasized that the company's pricing strategy is based on long-term planning rather than opportunistic profit-taking. "Our pricing reflects the value we deliver to customers, and we remain committed to close collaboration with our partners," the spokesperson said.

Tech media outlet Wccftech noted that the report did not specify whether the upcoming 2nm process would be included in the price adjustment. If 2nm is affected, major clients such as Apple, Qualcomm, and MediaTek could face additional cost pressures. NVIDIA's next-generation chips may also be impacted.

Chairman and CEO Mark Liu previously stated at the June shareholder meeting that while TSMC is considering price hikes, it would not follow the volatile pricing model of memory manufacturers. "I do want to raise prices, but we won't suddenly increase them fourfold like memory companies," Liu said, emphasizing TSMC's commitment to stable, partnership-based relationships.

Liu stressed that TSMC aims for sustainable profitability while maintaining trust with customers. "We must make money, but not at the expense of long-term partnerships. Sudden, extreme price changes are not sustainable," he added.

The primary reason for the price adjustment is the growing financial pressure across the semiconductor supply chain. Rising raw material costs, increasing manufacturing equipment expenses, and massive capital expenditures for new fabs overseas—including in the U.S., Japan, and Europe—are forcing TSMC to revise its pricing to reflect higher operational costs.

Industry analysts note that TSMC has historically avoided aggressive price hikes, prioritizing stability and customer trust. However, the current environment—marked by geopolitical tensions, supply chain diversification, and soaring R&D and construction costs—has made price adjustments inevitable.

This move signals a broader shift in the semiconductor industry, where even mature nodes are no longer immune to cost pressures. Customers in automotive, industrial, and consumer electronics sectors may need to renegotiate contracts or optimize designs to absorb the increased wafer costs.

Other foundries may follow TSMC’s lead, potentially triggering a wider industry-wide pricing reset. TSMC’s strategic decision could set the tone for global semiconductor pricing trends over the next several years.