TSMC raises prices on all advanced chips, hitting 75% of wafer revenue

TSMC Raises Wafer Prices 5-10% Across All Advanced Nodes

Taiwan Semiconductor Manufacturing Company has informed customers of broad price increases across all advanced process nodes at 7nm and below, a move that extends across roughly 75% of the foundry’s wafer revenue base and is wider in scope than many clients had anticipated.

Scope and Scale

The price hikes, ranging from 5% to 10% depending on the node, volume, and customer, apply to TSMC’s N7, N5, N4, N3, and upcoming N2 processes, according to reporting by Culpium’s Tim Culpan, who first detailed the breadth of the increases on June 22. While earlier rumors in Taiwanese media had focused on the 3nm node alone, which accounted for 25% of wafer revenue in the first quarter, the actual adjustment covers the entire advanced-node portfolio.kucoin

“TSMC does not comment on pricing. Our pricing strategy is strategic, not opportunistic,” the company said in an emailed statement to Culpium. “We will continue to work closely with customers and sell our value to them.”culpium

Some clients were caught off guard by the inclusion of the older 7nm node, the first to use EUV lithography tools. Price increases have already started rolling out, and even customers who have not yet finalized new agreements have been instructed to build the higher cost structure into their purchase orders.kucoin

What’s Driving the Increases

The move follows months of internal direction. Since early 2026, TSMC’s senior leadership told business development teams they needed to find ways to charge more, with managers pointing to the memory industry’s own pricing power as justification. Samsung, SK Hynix, and Micron raised memory chip prices between 65% and 90% in the first quarter alone.culpium

TSMC Chairman and CEO CC Wei told shareholders at the company’s annual general meeting earlier in June that he “would like to” raise prices, while CFO Wendell Huang told the BBC the same day that he “does not rule out” increases. The company faces cost pressures from inflation, a $165 billion U.S. expansion, currency fluctuations, and tariffs.bits-chips

Market Impact

TSM shares rose in overnight trading following confirmation of the price adjustments, according to Yahoo Finance, though the stock had already declined amid a broader semiconductor selloff. Analysts estimate the increases could add at least two percentage points to TSMC’s full-year gross margin, with around $70 billion of second-half sales subject to the higher pricing. TrendForce reported in May that the company is also weighing up to a 15% price increase on 3nm wafers specifically in the second half of 2026, with further hikes of 5% to 10% expected in 2027.trendforce

Apple CEO Tim Cook acknowledged the downstream effects last week, telling The Wall Street Journal that “unfortunately, price increases are unavoidable.”culpium