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TSMC is set to institute a price increase for chips it produces and is slated to start selling at these new higher prices at the beginning of 2027. According to reports, TSMC is looking to increase the price of its chips by up to 10%. A 10% increase may seem small, but it starts to sound like a lot when you factor in what TSMC charges per chip and more so when you look at the per wafer cost.
A 3nm wafer from TSMC is estimated to cost around $19,500. A 10% increase would push that price upwards to almost $21,500 ($21,450 to be exact). Now multiply that estimated average wafer cost by the hundreds or thousands, depending on how many wafers a company might contract out to TSMC to produce. That 10% becomes a lot larger. Keep in mind that these average wafer costs are just estimates. Manufacturers that don’t want to pay or can’t afford to pay higher prices also potentially have options for alternatives from companies like Samsung.
TSMC is still only rumored to increase the price of chips
TSMC has raised prices on its chip offerings several times before, so this latest news of an increase does line up with past decisions to charge more for its products. However, TSMC itself has not publicly confirmed higher prices. According to reporting from Reuters, which is reporting based on information from an exclusive Nikkei Asia report, sources familiar with TSMC’s pricing strategy are making the claims on a 10% price increase.
According to TSMC, it does not comment on its pricing strategies. However, a spokesperson did mention that “Our pricing strategy is strategic, not opportunistic. We will continue to work closely with customers and sell our value to them.”
TSMC has stated that it wouldn’t be raising prices on its chips “abruptly” but that doesn’t meant that it wouldn’t raise prices. TSMC has also confirmed via a statement made by its CEO that the company would like to raise prices. The CEO has also stated that prices could go up, as the AI chip demand won’t be met for years to come.
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