TSMC finalizes 3%-6% wafer price hikes for 2027

TSMC Taiwan Semiconductor Manufacturing Company Limited ↘ 1.20% has finalized plans to raise wafer foundry prices by approximately 3% to 6% beginning in January 2027, according to supply chain sources cited by DigiTimes on Wednesday. The increases will vary by process node, with advanced nodes such as 2-nanometer and 3-nanometer expected to see larger hikes amid surging AI chip demand.finance.biggo+2

The reported pricing adjustments refine earlier estimates from July, when Nikkei Asia first reported that TSMC had been in negotiations with customers over base price increases of up to 10% across both advanced and mature nodes. Those talks, which began in June and concluded in July, also included a 10% to 15% surcharge for customers exceeding original high-performance computing volume commitments. The latest figures suggest the finalized increases landed toward the lower end of that range for most process technologies.news.futunn+3

AI Demand Driving Pricing Power

The price increases come as TSMC rides a wave of AI-driven demand that has pushed revenue to record levels. In August, the company reported monthly sales of approximately NT$514.81 billion, a 53.3% year-over-year increase and the first time TSMC crossed the NT$500 billion threshold in a single month. Advanced nodes at 7-nanometer and below accounted for 77% of wafer revenue in the second quarter, with the 2-nanometer node ramping production at what management described as a "steep" pace.financefeeds

Nvidia ↘ 1.47%, one of TSMC's largest customers, reported quarterly revenue of $75.2 billion in August, a 106% year-over-year increase, and disclosed that it had nearly doubled its supply capacity commitments to $279 billion. TSMC's gross margin reached 69.3% in the second quarter, up from 58.6% a year earlier, reflecting the premium pricing of cutting-edge wafers.financefeeds

Industry-Wide Repricing

TSMC is not alone in adjusting prices. Samsung was also reportedly planning chip price increases amid the demand surge fueled by AI customers. TrendForce reported in July that TSMC's mature-node price hike would be the company's first for older processes in more than three years. Nomura had estimated that prices for 2-nanometer, 3-nanometer, and 5-nanometer nodes would rise 5% to 10%.finance.yahoo+1

TSMC has not publicly commented on the pricing reports. The company is expected to report September revenue in the second week of October, followed by its third-quarter earnings call, where analysts will watch for updated full-year guidance and any changes to the company's capital expenditure budget of $44 billion to $56 billion.financefeeds