TechFlow News, July 21: According to Nikkei Asia, citing multiple informed sources, TSMC (TSM.N) plans to raise foundry prices for advanced and mature process chips in 2027, with increases of up to 10%, to address pressure from rising costs of materials, manufacturing equipment, and overseas new factory construction. TSMC has begun negotiations with customers regarding the price increase, involving 7nm and more advanced processes. This segment contributed about 77% of TSMC's revenue in the April to June quarter this year.
Sources said the base price increase range is 5% to 10%, depending on the customer and product. For new orders of high-performance computing (HPC) chips that exceed customers' original forecasts, TSMC plans to add a premium of 10% to 15% on top of the base price increase. Therefore, the overall price increase for some advanced process chip orders may exceed 10%. Regarding mature processes (including 12nm, 16nm, 28nm processes and other traditional technologies), TSMC plans a maximum price increase of 10%, but the increase for some products will be lower than this level. The mature process business accounted for about 23% of the company's revenue in the previous quarter. Sources said relevant negotiations started around June and were finalized in July, with new prices taking effect in early 2027. (Jin10)
