TSMC to Raise Foundry Prices by Up to 10% for 2027
Miles Bennett
TSMC has wrapped up pricing talks for 2027, lifting both advanced- and mature-node fees by up to 10% — the latest sign that rising costs are rippling through the entire chip supply chain.
How much more for advanced nodes?
Base increases for 7 nm and below run 5% to 10%, depending on customer and product.
The kicker is overflow orders: for HPC chip volumes that exceed a customer's original forecast, TSMC plans an extra 10%–15% surcharge on top of the base hike.
This means → some advanced-node orders could see a combined increase above 10% — the hotter the AI chip demand, the steeper the premium.
Advanced nodes accounted for roughly 77% of TSMC's Q2 revenue this year — by far its profit engine.
Are mature nodes going up too?
Nodes spanning 12 nm, 16 nm, 28 nm and older will rise by up to 10%, with some products below that ceiling.
Mature nodes made up about 23% of TSMC's Q2 revenue.
In plain terms = it is not just cutting-edge chips getting pricier — the high-volume, low-margin workhorses are rising too, lifting the cost floor across the whole supply chain.
Why raise prices — and why wait until 2027?
TSMC cites three simultaneous cost pressures: materials, manufacturing equipment, and overseas fab construction.
The company committed an additional $100 billion to its Arizona expansion and raised its 2026 capex plan to as much as $64 billion; the 2 nm production ramp is also weighing on gross margins.
This means → the hike is not opportunistic profit-taking — it is a response to costs that can no longer be absorbed.
TSMC chose to delay the increase to 2027 rather than act immediately, giving customers time to adjust, according to industry executives familiar with TSMC's pricing strategy.
What does TSMC say about its pricing philosophy?
Chairman C.C. Wei was explicit: "We would not suddenly raise prices four or five times."
We earn our value and make sure the profit and gross margin is good enough to support sustained long-term expansion — that is good for both customers and TSMC.
C.C. Wei
TSMC Chairman
(July 2025 earnings call)
Who pays — and what is the industry backdrop?
Customers directly affected include Nvidia, Apple, Google, Amazon, Qualcomm, Arm and MediaTek — higher foundry fees will flow straight into their chip costs.
TSMC is not acting alone: Intel and AMD raised processor prices months ago, TSMC subsidiary Vanguard International Semiconductor has already hiked, and UMC began raising prices in July.
Put simply = the entire semiconductor supply chain is in a broad pricing upcycle; TSMC is simply the largest and most far-reaching mover.
Whether this increase lands smoothly — without triggering order-mix shifts from customers — will be the key test in early 2027.
Content is for reference only, not financial advice.