Reports say TSMC will raise prices! Advanced process may increase by 5-10%, impacting these 4 listed large companies.

Independent media founder Gao Chanming revealed that TSMC will raise prices. TSMC’s price increase for advanced process technologies is expected to range from 5% to 10%, covering 7nm and even more advanced technology nodes. This move will directly raise the costs of four major technology giants, but is expected to improve TSMC’s gross margin.

TSMC reportedly to raise prices, advanced-process price hikes exceed expectations

Independent media outlet Culpium founder Gao Chanming (Tim Culpan) broke the news that TSMC has informed its customers and is preparing to increase the price of advanced process technology.

This price increase range is not limited to the latest 3nm node; it also expands to 7nm and more advanced process combinations. The pricing adjustment will affect TSMC’s wafer revenue base of nearly 74% to 75%, with both breadth and depth far exceeding prior expectations.

The report states that the overall price increase is expected to fall between 5% and 10%. Some wafer price adjustments have already been implemented, while other customers are being asked to incorporate a higher cost structure into future purchase orders.

Image source: Independent media outlet Culpium founder Gao Chanming (Tim Culpan) revealed that TSMC has notified customers and is preparing to increase the price of advanced process technology.

Memory giants significantly adjust pricing, TSMC follows to demonstrate technology value

Regarding the reasons for the price adjustment, Gao Chanming cited information from multiple insiders, saying that TSMC’s top management instructed the sales team to find ways to raise prices as early as early 2026. The main reason is that management noticed that memory chip giants such as Samsung, SK Hynix, and Micron have significantly raised prices amid the AI boom.

In the first quarter of 2026, these memory giants raised prices by as much as 65% to 90%. As a result, TSMC asked employees to link the price increases to TSMC’s technological advantages and value positioning.

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In response to media inquiries, TSMC said its pricing strategy is strategic rather than a gimmick. However, Gao Chanming believes this is a default assumption.

He said that TSMC Chairman and President C.C. Wei had previously publicly expressed at the June 2026 shareholders’ meeting that it hopes to raise prices, and CFO Huang Renxiao also said TSMC does not rule out the option of raising prices.

TSMC’s price hikes likely to affect 4 major listed tech giants

The most surprising part of this pricing adjustment for customers is that the relatively mature 7nm process is also on the list of price increases.

Tom’s Hardware reported that although 7nm is no longer a top-tier flagship technology, it is still widely used in processors and AI accelerators. Many chip designers, considering yield and cost effectiveness, will choose to remain at the 5nm or 7nm node when they do not need the high-density performance of 3nm or 2nm.

This round of price hikes will directly increase production bills for major chip design firms. Multiple listed enterprises facing cost pressure, including four benchmark technology giants—Apple, Nvidia, AMD, and Qualcomm, will also be impacted. In addition, major customers such as Broadcom and MediaTek will be affected as well.

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Capacity shortage and high demand, price hikes are expected to bolster TSMC’s gross margin

If TSMC can successfully push through the price increases, it reflects its strong bargaining power in the market.

TSMC holds a leading position in advanced logic chip manufacturing. With the explosion in AI chip demand, TSMC has ample room to pass on costs. For example, its factory in Arizona, the United States, had capacity fully booked as early as early 2025, extending through 2027.

According to Culpium data estimates, TSMC’s full-year 2026 revenue will grow by at least 30%, reaching more than $160 billion. Of that, approximately $85 billion in revenue is expected to be realized in the second half of the year. With the pricing adjustments taking effect during that period, this price increase will cover nearly $70 billion in sales.

If calculated based on an average price increase of 5%, it is expected to bring an improvement of more than 2% to TSMC’s full-year 2026 gross margin.

For consumers, while higher wafer prices do not necessarily mean that end products will increase by the same amount directly, under the overlapping effects of a memory price surge and rising production costs, device manufacturers may still raise prices to maintain profit margins.