TSMC to raise chipmaking prices by up to 10% in 2027, Nikkei Asia reports

July 21 (Reuters) – TSMC, the world’s largest contract chipmaker, plans to raise chipmaking prices by up to 10% from 2027 to offset rising costs for materials, manufacturing equipment and overseas plant construction, Nikkei Asia reported on Tuesday, citing multiple sources.

Here are more details:

• The base price increases range from 5% to 10%, depending on the customer and product, the report said.

• Mature-node production, covering 12-nm, 16-nm and 28-nm technologies, faces increases of up to 10%, the report said.

• Negotiations began in June and concluded in July, with new pricing set to take effect at the start of 2027, Nikkei said.

• TSMC does not comment on pricing, a company spokesperson said when contacted by Reuters.

• “Our pricing strategy is strategic, not opportunistic. We will continue to work closely with customers and sell our value to them,” the spokesperson said.

• TSMC CEO C.C. Wei said in June that he would like to hike prices, adding that the company would refrain from abrupt price hikes that some memory firms have imposed.

• Last week, TSMC, widely regarded as a bellwether for AI chip demand, surpassed market expectations to post a 77% jump in second-quarter profit touching a record high of T$706.6 billion ($22 billion).

(Reporting by Shubham Kalia, Chandni Shah and Ananya Palyekar in Bengaluru; Editing by Subhranshu Sahu)