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TSMC, the Taiwanese foundry that manufactures every A-series and M-series chip Apple sells, has finalized plans to charge customers up to 10 percent more starting in January 2027, according to Nikkei Asia.
The increases cover both older production processes and the advanced sub-7-nanometer nodes Apple depends on for its iPhones, iPads, and Macs.
Apple has already raised prices across multiple product lines in 2026. CEO Tim Cook described those increases as unavoidable, pointing to higher costs for memory and storage components.
The TSMC price hike adds another layer of cost pressure before any 2027 devices reach store shelves.
How the New Pricing Works
TSMC began discussing the new rates with customers in June and wrapped up negotiations this month.
The base increase ranges from 5 to 10 percent across its product lineup. Companies that order more advanced chips than originally forecasted will face an additional 10 to 15 percent premium on top of that, meaning some chip orders could end up costing well over 10 percent more in total.
The foundry attributed the increases to higher material costs, more expensive manufacturing equipment, and the construction of new chip plants outside Taiwan.
TSMC told Nikkei Asia that its pricing approach is strategic rather than opportunistic, though the company declined to confirm specific numbers.
What This Means for iPhone Buyers
Apple is TSMC’s single largest customer, and 2027 is shaping up to be one of its more ambitious product years.
The company is expected to launch the iPhone 18 lineup alongside a separate series of devices marking the iPhone’s 20th anniversary.
Both product families would be built on the same advanced chips now subject to higher manufacturing costs.
Whether Apple absorbs those costs or passes them to buyers is an open question. The company’s recent track record offers little reassurance.
Just last month Apple raised the price of its Apple One subscription bundle, and the broader device price increases Tim Cook announced weeks earlier affected products across multiple categories.
TSMC’s decision to delay the new rates until 2027 rather than implement them immediately was described as a concession to give customers time to plan.
For Apple buyers, that window may be the last opportunity to purchase new devices before chip costs work their way into retail prices.
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