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TSMC May Raise Advanced Chip Prices by 5%–10%
According to reports, Taiwan Semiconductor Manufacturing Company (TSMC) is preparing a broad increase in wafer fabrication pricing across its advanced process technologies, extending well beyond previously rumored 3nm nodes. Industry sources indicate that the pricing adjustments could affect process technologies accounting for approximately 75% of TSMC’s wafer revenue, making the move more extensive than earlier market expectations.
Technology journalist Tim Culpan cited multiple sources familiar with the matter, stating that TSMC’s business development and sales teams were instructed earlier this year to pursue higher pricing strategies. Company management reportedly believes that growing demand and improved pricing power across the semiconductor industry justify stronger monetization of TSMC’s advanced manufacturing capabilities.
While earlier market speculation suggested that only 3nm production would be subject to price increases, sources now indicate that all process technologies from 7nm and more advanced nodes will see higher pricing. This significantly expands the scope of the adjustments. Although 3nm technology contributed approximately 25% of TSMC’s wafer revenue in the first quarter, the company’s broader advanced-node portfolio represents around 75% of total wafer revenue.
Customers have reportedly been surprised by the inclusion of mature advanced technologies such as 7nm in the pricing plan. Some industry participants also believe that selected mature-node processes may eventually be affected.
According to the report, implementation of the price increases has already begun. Even in cases where formal adjustments have not yet taken effect, customers are reportedly being encouraged to factor higher manufacturing costs into future orders. The exact increase is expected to vary depending on customer agreements, process technologies, and product categories, but industry estimates suggest a range of approximately 5% to 10%.
Responding to the reports, TSMC stated that its pricing strategy is “strategic rather than opportunistic” and emphasized that it will continue working closely with customers to demonstrate the value of its technology and manufacturing services.
The company’s comments are widely viewed as consistent with previous statements from senior management. Earlier this month, TSMC Chairman C.C. Wei indicated during the company’s annual shareholders meeting that he hoped to raise prices, while Chief Financial Officer Wendell Huang stated that price increases could not be ruled out.
Based on current market expectations, Culpan estimates that TSMC’s revenue could grow by more than 30% in 2026, surpassing US$160 billion. Approximately US$85 billion of that revenue is expected to be generated during the second half of the year, when the new pricing structure begins to take effect. Advanced process technologies are projected to account for at least 80% of wafer revenue during the period.
If non-wafer business segments, which represent roughly 15% of total revenue, grow proportionally, the pricing adjustments could influence nearly US$70 billion in annual sales. Assuming an average price increase of 5%, TSMC’s gross margin could improve by two percentage points or more, further strengthening profitability amid sustained demand for advanced semiconductor manufacturing.
