TSMC to Raise Foundry Prices by Up to 10% in 2027

Some advanced chips may face steeper increases

Taiwan Semiconductor Manufacturing Co., the world’s largest contract chipmaker, plans to raise production and service fees by about 10% starting in 2027.

Nikkei Asia reported on July 22 that TSMC decided to increase prices for non-memory chip manufacturing from 2027, citing higher raw-material costs, more expensive manufacturing equipment and rising spending on new fabs. The increase will vary by customer and product, but chips produced on 12-nanometer, 16-nanometer and 28-nanometer processes could see price hikes of as much as 10%.

Some advanced chips could face final price increases above 10%. If orders for products such as high-performance computing chips exceed demand forecasts, TSMC plans to add another 10% to 15% on top of the base increase. The company said it chose next year rather than the second half of this year for the increase to give customers enough time to respond.

Chipmakers have been raising prices this year, including non-memory manufacturers such as TSMC and Intel and memory producers such as Samsung Electronics Co. and SK Hynix Inc. Demand driven by the data-center boom has outstripped supply. TSMC’s latest move differs from other semiconductor makers’ price increases in that it cited rising manufacturing costs as well as supply-demand imbalances. Earlier this year, the company also warned of pressure on supplies of chipmaking gases such as helium and higher costs tied to the U.S.-Iran war. The added strain is fueling concern that “chipflation,” or broader inflation driven by higher semiconductor prices, could intensify.

Son Ju-hyung, Hankyung.com reporter handbro@hankyung.com