TSMC to raise chip prices through 2030
Taiwan Semiconductor Manufacturing Co. plans to increase prices for its most advanced chip production technologies by 3% to 5% annually beginning in 2026, a move that will affect processors and graphics cards from major technology companies. The price adjustments will apply to manufacturing processes below 5 nanometers, which are used by AMD, NVIDIA, Apple and Qualcomm.
The manufacturer attributes the increases to higher expenses for energy, materials and infrastructure while simultaneously funding factory construction and upgrades across Taiwan, Japan and the United States. TSMC produces more than 80% of global artificial intelligence chips, placing the company in a dominant market position as demand for data center hardware continues growing. Advanced manufacturing nodes currently generate approximately 74% of company revenue, with 5 nm accounting for 37% and 3 nm representing 23%.
The semiconductor giant says the pricing strategy will extend through at least 2030 and help finance research into future technologies like 1.4 nm processes. Resources are being redirected away from older 6 nm and 7 nm production, potentially creating challenges for automotive and industrial clients. While competitors such as Intel and Samsung are developing their own 2 nm capabilities, TSMC maintains a substantial technological lead that allows the company to implement price increases without losing significant business.
