July 23, 2026 / SemiMedia / — TSMC has reportedly completed discussions with customers on foundry price increases scheduled to take effect in early 2027, as higher material, semiconductor equipment and overseas manufacturing costs place greater pressure on the company’s investment requirements.

Base price adjustments are expected to range from 5% to 10%, depending on the customer, process technology and product. Negotiations reportedly began around June and were concluded in July, giving customers several months to revise product budgets and production plans before the new pricing takes effect.

For advanced technologies covering 7nm and more advanced nodes, the reported base increase is also between 5% and 10%. Additional high-performance computing chip orders that exceed customers’ original volume forecasts could carry a further premium of 10% to 15%.

The additional charge applies to orders placed beyond previously forecast volumes. It does not indicate that every HPC order will receive another 10% to 15% increase. The combined adjustment could nevertheless push the total increase for some incremental advanced-node orders above 10%.

HPC represented 66% of TSMC’s revenue during the second quarter of 2026, following a 20% sequential increase. Advanced technologies, which TSMC defines as 7nm and below, accounted for 77% of wafer revenue. The 2nm, 3nm, 5nm and 7nm nodes contributed 3%, 30%, 33% and 11%, respectively.

Mature technologies, including 12nm, 16nm and 28nm processes, could receive increases of as much as 10%, although adjustments for some products are expected to be lower. Mature and other process technologies together represented approximately 23% of second-quarter wafer revenue.

Demand conditions across mature nodes remain uneven. TSMC said during its second-quarter earnings conference that shortages are concentrated in products linked to AI infrastructure, particularly power management ICs and sensors. Mature-node products serving weaker consumer markets are not experiencing the same level of demand pressure.

The reported price adjustment comes as TSMC increases spending to support AI and advanced-technology demand. The company raised its 2026 capital expenditure budget to between $60 billion and $64 billion. Management also identified inflation in semiconductor equipment prices and margin dilution from overseas fabs as continuing cost pressures.

TSMC said on July 21 that it does not comment on pricing matters. The company reiterated that its pricing approach is driven by long-term strategy and the value delivered to customers. The reported increases have therefore not been confirmed through a publicly issued TSMC price schedule.

Chairman and CEO C.C. Wei recently said TSMC must generate sufficient profit to support sustainable capacity expansion while keeping customer economics viable. He joked that he was envious of the 86% gross margin achieved by some memory suppliers and would be satisfied with 68%, while ruling out sudden multi-fold price increases that customers could not absorb.