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The steady rise in global semiconductor prices shows no sign of slowing, with Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, reportedly planning to increase chip prices by up to 10% from early 2027.
According to a report by Nikkei Asia, the planned price hike will affect both TSMC’s cutting-edge 2-nanometre chips and older-generation chips, including 12nm, 16nm and 28nm products, with prices expected to rise by between 5% and 10%.
The increase is expected to have far-reaching consequences for some of the world’s biggest technology companies, including Nvidia, Apple, Qualcomm, AMD and Intel, all of which rely heavily on TSMC for chip production.
Higher manufacturing costs for these companies are likely to be passed on to consumers, potentially driving up prices for smartphones, tablets, laptops, smartwatches and other consumer electronics.
The report said the higher costs could also affect Google’s future Tensor G11 processor, expected to power upcoming Pixel smartphones, while increasing production costs for a wide range of mid-range devices.
TSMC has reportedly attributed the planned price increase to rising costs of raw materials and manufacturing equipment, as well as the significant investment required to expand production outside Taiwan.
The company has been building advanced semiconductor manufacturing facilities in countries including the United States, where production costs are considerably higher than in Taiwan.
The anticipated price hike has prompted major technology companies to explore alternative supply options.
Apple is reportedly in discussions with Intel and Samsung as part of efforts to diversify its semiconductor supply chain and reduce dependence on a single manufacturer.
Meanwhile, Intel plans to manufacture between 80% and 90% of the components for its next-generation Nova Lake processors using its own production facilities rather than relying on external foundries.
Qualcomm is also said to be considering increasing its reliance on Samsung for future mobile chip production.
If implemented as planned, TSMC’s new pricing policy will take effect in early 2027, with consumers expected to feel the impact on the prices of electronic devices within months as manufacturers adjust to higher production costs.
