TSMC Implements Second Price Hike This Year, Raising Premium Chip Costs by 10%

TSMC has announced a new round of price increases for its advanced process technologies, marking the company's second adjustment this year. The move will see premium chip manufacturing costs rise by up to 10%, following January's price increases of 3-8% for 3nm/5nm processes and 10-20% for CoWoS advanced packaging services, with AI-related products experiencing the highest adjustments.

This pricing strategy reflects TSMC's response to multiple pressures including rising R&D costs, U.S. tariff policies, and currency exchange fluctuations. The company plans further increases of 5-10% for its 5nm, 4nm, 3nm, and 2nm processes in 2026, and has already communicated preliminary pricing plans to strategic partners.

The cumulative price adjustments will significantly impact the semiconductor ecosystem. Chip design companies face cost structure redesigns and potential product roadmap reassessments, while cost-sensitive applications may seek alternative supply chain solutions. For TSMC, balancing market share retention with profitability improvement remains a critical challenge that will shape competitive dynamics across the industry.