TSMC Plans Up to 10% Chip Price Hike in 2027
The global rise in semiconductor prices shows no sign of slowing. Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest contract chipmaker, is planning to increase the prices of its chips by up to 10% starting in early 2027, according to a report by Nikkei Asia.
Impact on Tech Giants and Consumers
The planned price hike will directly affect some of the world's biggest technology companies, including Nvidia, Apple, Qualcomm, AMD, and Intel, all of which rely heavily on TSMC's manufacturing services. Higher chip production costs are expected to trickle down to consumers, potentially raising the prices of smartphones, tablets, laptops, smartwatches, and other electronic devices.
According to the report, TSMC will increase prices not only for its cutting-edge 2-nanometer chips but also for mature manufacturing processes such as 12nm, 16nm, and 28nm, with increases ranging from 5% to 10%. As a result, production costs for future processors—including Google's rumored Tensor G11 chip—as well as many mid-range devices are expected to rise significantly.
Reasons Behind the Increase
TSMC cited rising costs of raw materials and manufacturing equipment as the primary reasons for the price adjustment. The company also needs to offset the massive investment required to build advanced semiconductor fabrication plants outside Taiwan, particularly in the United States.
Tech Companies Seeking Alternatives
Amid concerns over rising chip costs, major technology firms are exploring alternative suppliers. Apple is reportedly in discussions with Intel and Samsung to diversify its semiconductor supply chain.
Meanwhile, Intel plans to manufacture 80–90% of the components for its upcoming Nova Lake processors using its own internal production facilities rather than relying on external foundries. Qualcomm is also reportedly considering shifting more of its mobile chip production back to Samsung.
If TSMC's planned price increases take effect in early 2027, consumers are likely to begin feeling the impact on retail technology product prices within the following months.
//DBTech/BMT/OR//
