TSMC eyes price hikes of up to 25% on chip production services in 2027
6 hours ago
- TSMC plans to raise baseline prices for advanced chip production services by 5% to 10% in 2027.
- Customers needing extra HPC capacity beyond original volume may face an additional 10% to 15% premium, totaling up to 25%.
- Mature process nodes (12nm, 16nm, 28nm) will also see price increases, up to 10%.
- The price hikes aim to offset increased costs from AI demand, tools, materials, and new capacity investments.
- Negotiations with clients like Apple, AMD, Nvidia, and MediaTek began in June and concluded in July, with implementation delayed to 2027.
- TSMC's price increases will likely raise costs across the electronics industry due to its dominant market position.
- Other foundries and memory makers are also raising prices, but TSMC CEO C.C. Wei denies sudden or drastic hikes.