SerpApi.Org
TSMC, the world's largest contract chipmaker, manufactures chips for companies like Apple, Google, Nvidia, AMD, and more. It's known for its cutting-edge manufacturing of advanced nodes at 6nm or less, the kind of chips you'll find in your latest iPhones and Macs. These advanced nodes will see price increases of as much as 10% in 2027, aimed at covering rising manufacturing costs.
However, it's not just the bleeding-edge stuff. Even older more mature nodes like 12nm, 16nm and 28 nm, considered outdated for cutting-edge tech but still widely used in automotive applications, smart appliances, and more, will also be caught up in the hike, with the changes covering both advanced and mature semiconductors.
Negotiations reportedly began in June and were finalized this month, with base-price hikes of between 5% and 10%. The new pricing is set to take effect at the start of 2027, Nikkei Asia reported.
Worth noting: this isn't a flat 10% across the board. Advanced-node hikes will vary by customer and product, with extra-premium pricing possible on high-performance computing orders. In fact, for high-performance computing chip orders exceeding previously agreed quantities, a 10% to 15% surcharge could be added on top of the base increase, meaning advanced AI chip orders from companies like Nvidia could end up costing well over 10% more than they do today. At the time of writing, Nvidia is among the world's most valuable companies, frequently swapping the top spot with Apple.
Tech to get more expensive overall in 2027
It's bad news if you're a consumer tech lover, as prices are set to go up across the board — and not everyone will feel it the same way. Nvidia and AMD are fairly well placed to pass the extra cost down to server makers and cloud companies. Apple has a tougher call: raise prices further, cut costs elsewhere, or accept thinner margins, and it's already just hiked prices across its Mac and iPad range. Android makers using Qualcomm chips face a similar squeeze, though price-sensitive markets make it harder to pass the full cost on to buyers.
This all comes on top of an existing AI-driven memory shortage that's already pushed RAM and storage prices up.
For TSMC, it's simply a matter of surging demand, largely driven by AI chips. The company just reported a record quarterly net profit of roughly $21.9 billion for Q2, comfortably beating market expectations.
This could also open a window for competitors, primarily Samsung and Intel, to claw back some ground. Both have been playing catch-up for a while now, and while neither competes with TSMC at the cutting-edge node level, they remain its closest rivals overall. It remains to be seen whether they can actually capitalize on the opening.
