TSMC has finalized a wafer price adjustment plan for all process nodes, set to take effect in 2027, with base hikes of up to 10% across both advanced and mature nodes. The negotiation process began in June and concluded in July, with a one-year delay to give major clients like Apple, Nvidia, AMD, and MediaTek time to adjust product planning and cost structures.

The price increase covers a broad range of nodes, including 12nm, 16nm, and 28nm mature technologies. For customers requiring additional HPC capacity beyond their base allocation, TSMC plans to apply an additional 10–15% premium on top of the standard increase. Combined, some high-end foundry orders could see total hikes approaching 25%.

According to TSMC's Q2 2026 earnings, 7nm and below accounted for 77% of wafer revenue, while mature nodes contributed 23% – meaning the majority of its foundry business is now subject to higher pricing. AI demand from Nvidia, AMD, Apple, Google, and Amazon continues to strain capacity, reinforcing TSMC's pricing power. Rising costs in R&D equipment, raw materials, and overseas fab construction in the U.S., Japan, and Germany also underpin the adjustment.

TSMC is not alone in this cycle. UMC and Vanguard have already raised prices, memory makers have hiked DRAM, HBM, and NAND pricing, and Intel has increased CPU prices across client and data center segments.

On the Q2 earnings call, Chairman C.C. Wei joked about envying memory makers' 86% gross margins, but reaffirmed TSMC's philosophy of stable, long-term partnerships – avoiding sudden, drastic hikes. He set a sustainable gross margin target of 68% , noting the company's current margin stood at 67.7%. The upcoming price increases are expected to further expand that.

From ICgoodFind: AI demand is reshaping foundry pricing – and 2027 is just the starting point. For buyers, locking in long-term agreements early is now the only hedge against rising costs and extended lead times.