TSMC plans to raise chip prices 5 to 10 percent from January 2027 as AI demand strains capacity

TSMC plans to raise baseline chip production prices 5 to 10 percent starting January 2027, its first increase on mature manufacturing nodes in more than three years, people familiar with the negotiations said.

The increase would cover both advanced nodes, meaning 7-nanometer-class and below, and mature nodes at 12, 16 and 28 nanometers. Customers requesting high-performance-computing capacity beyond their original forecast volumes face an additional 10 to 15 percent premium, which could push some advanced-node orders more than 25 percent higher.

The move lands days after TSMC reported second-quarter earnings on July 16, and it reflects how thoroughly AI demand has strained the world’s largest contract chipmaker. Negotiations with customers including Apple, Nvidia, AMD and MediaTek began around June and concluded in July; the January 2027 start date gives buyers time to adjust their own pricing.

TSMC declined to confirm specific figures but said its pricing approach is “strategic, not opportunistic,” citing rising costs for materials, equipment and overseas fab construction.

For Apple, the largest buyer of TSMC’s most advanced capacity, higher wafer costs feed directly into the bill of materials for iPhones and Macs, though the January timing lands well before the next flagship cycle. The reported figures remain unconfirmed by TSMC, and final terms can shift as contracts are signed.

Whether the premiums hold at the reported 5-to-25 percent range, or soften under pushback from TSMC’s biggest customers, will surface as 2027 supply contracts close.