TSMC Plans to Increase Advanced Chip Prices by Up to 10% Due to Surging Demand from Mobile and HPC Clients

As TSMC continues to push the boundaries of chip technology, projections indicate that costs for their advanced fabrication processes may rise. The company is adjusting its pricing strategy for mainstream nodes, signaling a forthcoming price increase.

Rising Costs for TSMC’s 3nm and Future Chips: An Outlook on Demand

The global demand for semiconductors is currently surging, fueled by advances in artificial intelligence and an ongoing consumer upgrade cycle in the mobile sector. TSMC, a key player in the industry, boasts a remarkable 100% utilization rate across its advanced chip processes, including those using 3nm and 5nm technologies. A recent report from the Taiwan Economic Daily indicates that TSMC has begun discussions with clients about supply contracts, projecting potential price hikes of up to 10% in the coming year.

Rapidus semiconductor facility in Japan aiming for 2nm chip mass production by 2027 amid competition from TSMC and Samsung

Typically, TSMC has maintained a low profile regarding speculation about price increases, valuing its long-standing relationships with its clients. Historically, price adjustments for specific nodes have not been overly aggressive. However, as we look ahead to 2026, the company is grappling with significant production challenges, particularly as high-performance computing (HPC) customers begin to dominate its order volume, a space traditionally held by mobile device manufacturers.

Moreover, TSMC’s substantial investments in international facilities—such as in the United States and Japan—have contributed notably to rising operational costs. On a positive note, the competitive landscape in the semiconductor market is somewhat lenient, providing TSMC with leverage during pricing negotiations. While their reputation for fostering good relationships may cushion the impact of price increases, even a 10% rise could be perceived as moderate in this context.

Source & Images