TSMC Announces Upcoming Price Hike of up to 10%
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is planning to increase its chip manufacturing prices by up to 10% starting in early 2027. The price adjustments, which vary between 5-10%, will primarily affect mature-node chips built on 12nm, 16nm, and 28nm technology. These changes follow a period of negotiations from June through July and are expected to take effect at the beginning of next year. TSMC's decision comes after it reported record second-quarter profits that surged by 77% to T$706.6 billion (approximately $22 billion), surpassing market expectations. The company, a key supplier for major tech firms like Nvidia and Apple, has stated its pricing strategy is strategic rather than opportunistic. While the move highlights TSMC's strong position in the semiconductor industry with over 95% of early N2 chip demand expected to go through it, there are concerns about potential risks. These include customer resistance or a slowdown at major clients like Apple and Nvidia, as well as geopolitical uncertainties surrounding Taiwan.
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Topics: customer relations pricing strategy semiconductor industry TSMC