Taiwan Semiconductor Manufacturing Company (TSMC) is planning to raise its chipmaking prices by 5% to 10% starting in January 2027, according to a report by Nikkei Asia. The most significant increases, up to 10%, will apply to mature-node processes such as 12-nanometer, 16-nm, and 28-nm technologies, while advanced-node pricing will be negotiated per customer with possible extra premiums for high-performance computing orders.
The price hike, which drove TSMC's American depositary receipts (ADR) up roughly 4% in pre-market trading on Tuesday, comes as the company faces rising costs for materials, manufacturing equipment, and the construction of overseas fabrication plants in Arizona and Japan. “Our pricing strategy is strategic, not opportunistic. We will continue to work closely with customers and sell our value to them,” a TSMC spokesperson said. CEO C.C. Wei had previously indicated a preference for gradual increases.
The announcement follows TSMC's record Q2 2026 results, where revenue hit $40.2 billion (up 34% year-over-year) and gross margins reached an all-time high of 67.7%. The company also raised its full-year revenue growth guidance to over 40% and increased capital expenditure forecasts to $60–$64 billion, citing strong multi-year demand for AI chips. Morgan Stanley analyst Charlie Chan had anticipated the move, suggesting a 5%–10% increase in leading-edge wafer pricing next year.
In a separate development, Taiwanese prosecutors charged a former TSMC employee on Monday with stealing closely guarded chip technology. The suspect allegedly planned to use the stolen material in China. Taiwan classifies such data as a national core asset, and the case involves methods protected under national security rules. The filing came a day after President Lai Ching-te warned at the Democratic Progressive Party’s annual convention that Taiwan must resist Chinese pressure, which he described as “red terror,” including what he called “legal warfare” such as a new ethnic unity law that could target Taiwanese abroad.
TSMC remains a key player in the global chip supply, serving AI customers and expanding its Arizona operations with an additional $100 billion investment. CFO Wendell Huang noted strong demand from American clients and government support. Despite the strong business performance, shares were down about 3% after Monday’s close, before the pre-market rise on the pricing news.
