TSMC to lift wafer prices by up to 10% in 2027 as AI demand drives record profits

Taiwan Semiconductor Manufacturing Company (TSMC) has informed major customers, including Apple, Nvidia and Advanced Micro Devices (AMD), of a planned increase in wafer manufacturing prices for 2027. The base price hike is set at 5% to 10% across both advanced and mature process technologies, with negotiations for the revised rates concluding in July.

The pricing adjustment aims to mitigate rising costs associated with raw materials, manufacturing equipment and the company’s expanding global fabrication footprint. TSMC has characterised its approach as strategic rather than opportunistic, although the company declined to comment directly on the specific report regarding the price increases.

In addition to the base increase, an extra premium of 10% to 15% will apply to high-performance computing (HPC) capacity that exceeds original customer commitments. This structure could lift total price increases for some advanced nodes well above the 10% mark, reflecting the intense demand for cutting-edge artificial intelligence chips.

The move follows TSMC’s record-breaking second-quarter 2026 financial results, which underscore the strength of its market position. Consolidated revenue reached $40.20 billion, a 36% increase year-on-year, while net income surged 77.4% to $22.37 billion. Advanced technologies, defined as 7-nanometre and below, accounted for 77% of total wafer revenue in the quarter.

Wall Street analysts maintain a consensus Strong Buy rating for the stock, with an average price target of $497.77, implying potential upside from current levels. The stock has rallied 39% year-to-date in 2026, significantly outperforming the S&P 500 Index, as investors continue to back the company’s dominance in the AI-driven semiconductor market.