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July 21 (Reuters) - TSMC, the world's largest contract chipmaker, plans to raise chipmaking prices by up to 10% from 2027, two sources familiar with the matter said late on Tuesday.
One of the sources said the move is to offset rising costs for materials, manufacturing equipment and overseas plant construction.
Nikkei Asia first reported the price increase plan on Tuesday.
Here are more details:
• The base price increases up to 10%, depending on the customer and product, according to the sources.
• Mature-node production, covering 12-nanometre, 16-nm and 28-nm technologies, faces increases of up to 10%, the sources said.
• Advanced node production, under 6-nm, also faces increases of up to 10%, one of the sources said.
• Negotiations began in June and concluded in July, with new pricing set to take effect at the start of 2027, Nikkei Asia reported.
• TSMC does not comment on pricing, a company spokesperson said when contacted by Reuters on Tuesday.
• "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, Wen-Yee Lee in Taipei and Fanny Potkin in Singapore; Editing by Subhranshu Sahu and Christian Schmollinger)
