TSMC Weighs 2027 Chip Price Hike of Up to 10%, Calls Pricing "Strategic, Not Opportunistic"

How large is TSMC's planned 2027 price increase, and which chips does it cover?

According to Nikkei Asia, cited by United Daily News (E1) and China Times (E14), TSMC has discussed price increases with customers to reflect rising costs from materials, manufacturing equipment, and new overseas fab construction. The report says TSMC plans to raise prices for both advanced-node and mature-node chip production services starting in 2027, with increases reaching up to 10%, depending on the customer and product type.

A separate wire report cited by United Daily News (E3) put the range slightly wider, saying foundry prices for both advanced and mature processes would rise 5% to 10% or more starting next year, again citing rising costs for materials, production equipment, and overseas fab construction.

China Times, citing foreign media (E9), reported that TSMC — whose pricing leverage has grown amid AI-driven demand — has already completed a new round of price negotiations with customers, with increases of 5% to 10% depending on customer and product, and mature nodes (12nm, 16nm, 28nm) rising by up to 10%.

Market reports cited separately by China Times (E12) had earlier suggested TSMC was considering raising 3nm process prices by up to 15% in the second half of 2026, followed by a further 5% to 10% increase in 2027.

What is TSMC's official response and pricing philosophy?

Asked by CNA about the price-hike reports, TSMC said on the evening of July 21 that it would "not comment on pricing issues," but stated that its pricing strategy "has always been strategic rather than opportunistic," and that it would continue working closely with customers to provide value. This statement was reported identically by United Daily News (E2) and by the Commercial Times (E13).

That framing echoes remarks TSMC Chairman C.C. Wei made at the company's June shareholders' meeting, as reported by China Times (E10): with costs continuing to rise, the company does want to "adjust prices moderately," but it would not adopt the kind of large, sudden price increases seen from some memory chipmakers.

How do the increases differ across process nodes?

According to a foreign-media report cited by United Daily News (E4), the base increase for 7nm and more advanced nodes is roughly 5% to 10%, depending on the customer and product. On top of that base rate, TSMC is reportedly charging an additional 10% to 15% surcharge for customers ordering high-performance computing (HPC) chips — meaning total increases for some advanced-node products could exceed 10%.

For mature nodes — 12nm, 16nm, and 28nm — the same report (E5) says TSMC is planning increases of up to 10%, though some products may see smaller increases. China Times (E9) corroborates this, citing foreign media that mature-node increases (12nm/16nm/28nm) would reach as much as 10%.

When were prices negotiated, and when do they take effect?

According to the foreign-media report cited by United Daily News (E6), TSMC began negotiating prices with customers around June, reached agreements in July, and the new prices will take effect in early next year. The report characterizes TSMC's approach as "less aggressive," waiting until next year to raise prices in order to give customers time to adjust.

China Times (E9) gives matching dates: negotiations began in June and were completed in July, with new prices set to take effect officially at the start of 2027.

What cost pressures are driving the increases, and is this part of a longer-term plan?

United Daily News (E7) reports that the industry had previously said TSMC notified customers last September of a further single-digit-percentage price increase for 2026, and that TSMC plans to raise prices every year from 2026 through 2029 — a four-year run of consecutive increases, with the exact rate varying by customer purchasing tier. The report links this to sustained undersupply in TSMC's advanced-node capacity.

Chairman Wei's June shareholder remarks (E10) tie the increases directly to rising costs, saying the company wants to "adjust prices moderately" as costs continue to climb — but distinguishing this from abrupt, large-scale price jumps.

Separately, China Times (E11) reports that TSMC has forecast its 2026 US-dollar revenue will grow by more than 30%, driven primarily by continued strong demand for advanced chips tied to AI infrastructure build-out.

How important are mature nodes to TSMC's revenue, and how much room is there to raise prices there?

According to United Daily News (E5), mature-node chips — including 12nm, 16nm, and 28nm — accounted for approximately 23% of TSMC's revenue last quarter. The same report says TSMC is studying a price increase ceiling of up to 10% for these nodes, with some products seeing smaller increases than the cap.

What does TSMC say about its gross margin target?

At a recent earnings call, Chairman C.C. Wei said gross margin is naturally "the higher the better," but that TSMC's first priority is helping customers succeed — meaning the company will not raise prices to a level customers cannot bear, according to China Times (E8). Wei said he is "envious" of memory chipmakers' gross margins as high as 86%, but that TSMC would not pursue that path; reaching a gross margin of 68% would already leave him "very satisfied."

What this means

Taken together, the reported figures point to a layered pricing structure rather than a single flat increase: a base rate of roughly 5%-10% across advanced and mature nodes (E1, E3, E4, E5, E9, E14), an additional 10%-15% surcharge specifically for HPC orders (E4), and a separate, larger 2026 3nm increase of up to 15% reported ahead of a further 5%-10% rise in 2027 (E12). This structure sits alongside TSMC's own account of its 2026-2029 annual increase plan (E7) and Wei's June statement that the company wants to raise prices "moderately" rather than abruptly (E10) — a contrast the company itself draws with memory makers' pricing behavior (E10) and margin levels (E8). TSMC's declared unwillingness to comment on pricing specifics (E2, E13) means the 5%-10% figures circulating in these reports remain sourced to customers and foreign media rather than to TSMC directly, even as the company forecasts revenue growth of over 30% for 2026 on AI-driven demand (E11) and mature nodes continue to contribute roughly a quarter of quarterly revenue (E5).