TSMC is reportedly set to raise its wafer foundry outsourcing prices starting in 2027, with an increase of up to 10%.

Deep Tide TechFlow message: On July 21, citing multiple sources familiar with the matter, Nikkei Asia reported that TSMC (TSM.N) plans to raise its foundry prices for advanced and mature process chips in 2027, with increases of up to 10%, to cope with pressure from rising material costs, manufacturing equipment costs, and the cost of building overseas new fabs. TSMC has already begun discussions with customers about the price increases, covering 7-nanometer and more advanced process technologies. This segment contributed about 77% of TSMC’s revenue in the second quarter from April to June this year.

Sources said the baseline increase is 5% to 10%, depending on the customer and the product. For new orders of high-performance computing (HPC) chips that exceed customers’ previously forecast demand, TSMC plans to charge an additional premium of 10% to 15% on top of the baseline increase. As a result, the overall price increases for some advanced process chip orders may exceed 10%. For mature process technologies (including 12-nanometer, 16-nanometer, 28-nanometer processes and other traditional processes), TSMC plans to raise prices by up to 10%, but the increases for some products will be below that level. Mature process business accounted for about 23% of the company’s revenue in the previous quarter. Sources said the related negotiations started around June and were finalized in July, and the new prices will take effect in early 2027. (Jinshi)