1 month ago
TSMC Price Hike Could Increase Smartphone Costs
TSMC, the world's largest chipmaker, plans to raise prices for making chips starting in 2027.
This could make smartphones, tablets, and laptops more expensive.
TSMC makes chips for big companies like Apple and Qualcomm.
They say prices are going up because it costs more to make chips.
Some advanced chips might cost even more.
TSMC is also raising prices for older chip technologies.
They started talking to their customers about this in June and July.
TSMC hasn't officially confirmed the price increase, but they say they don't raise prices suddenly.
Other companies like OnePlus and Samsung have already raised prices because of higher costs.
This means your next phone might cost more.
TSMC plans to raise chip manufacturing prices by 5% to 10% starting in 2027.
High-performance computing chips may have an additional surcharge of 10% to 15%.
Older chip technologies like 12nm, 16nm, and 28nm will also see price increases.
Negotiations with clients concluded in July, with new prices effective in early 2027.
TSMC cites rising costs for materials, equipment, and new plant construction as reasons for the price hike.
- Who
- TSMC, Apple, Qualcomm, MediaTek, Nvidia, Google, OnePlus, Xiaomi, Nothing, Realme, Samsung
- What
- TSMC plans to raise chip manufacturing prices by 5% to 10% starting in 2027
- Where
- Global
- When
- Negotiations concluded in July, effective in early 2027
- Why
- Rising costs for materials, equipment, and new plant construction
TSMC's Price Increase
Consumer Impact
Price Increase Justification
TSMC's Price Increase
TSMC cites rising costs for materials, equipment, and new plant construction as reasons for the price hike.
Consumer Impact
Consumers may face higher smartphone prices due to increased manufacturing costs.
Key facts
- Company
- TSMC
- Planned Price Increase
- 5% to 10% starting in 2027
- High-Performance Computing Chips Surcharge
- 10% to 15% on top of the standard price hike
- Older Manufacturing Technologies
- 12nm, 16nm, and 28nm chips
- Negotiation Period
- June to July
- Effective Date
- Early 2027
- TSMC's Statement
- TSMC does not comment on pricing. Our pricing strategy is strategic, not opportunistic.
Quotes
C.C. Wei
Chairman of TSMC
“"We don't suddenly raise prices, four or five times … We earn our value and ensure that our profits—our gross margin—are sufficient to sustain our long-term expansion. This benefits both my customers and TSMC. That is our philosophy."”
thehansindia.com
“"TSMC does not comment on pricing. Our pricing strategy is strategic, not opportunistic. We will continue to collaborate closely with our customers and convey the value of our products to them."”
thehansindia.com
Sources
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