June 11, 2026 /SemiMedia/ — TSMC said price increases remain possible as inflation continues to raise operating costs, though the company emphasized that it does not plan to make sudden, extreme pricing moves.

Chief Financial Officer Wendell Huang said during the company’s annual shareholder meeting that inflation has increased TSMC’s cost base. However, he said the company would not suddenly raise prices by “four or five times,” adding that TSMC is reflecting the value of its technology and manufacturing capability.

TSMC manufactures some of the world’s most advanced chips designed by companies including Nvidia, AMD and Apple. Any increase in foundry pricing could affect cost structures across AI infrastructure, data center servers and high-end consumer electronics over time.

Huang did not make a firm commitment on price increases, but said inflation is clearly pushing costs higher. His comments come as demand for advanced process technologies remains strong, particularly from AI accelerators, high-performance computing chips and flagship smartphone processors.

TSMC Chairman and Chief Executive Officer C.C. Wei also told shareholders that he “wants” to raise prices, noting that some competitors have already done so. He said TSMC’s gross margin has improved from the 40% range to above 50%, and more recently to above 60%, reflecting years of investment, manufacturing execution and employee effort.

Wei said wafer pricing should reflect TSMC’s value. At the same time, he stressed that the company views customers as long-term partners, not simply transaction counterparties. He said profitability remains important, but TSMC does not intend to follow a model of sudden large price increases tied to short-term market swings.

Industry analysts said TSMC is facing both strong demand and rising cost pressure. The company is expanding manufacturing operations in the United States, Germany, Japan and Taiwan, while costs for labor, energy, equipment and supply chain operations continue to rise.

Huang also addressed TSMC’s overseas expansion, saying the company’s decision to build capacity outside Taiwan is driven by customer demand rather than pressure from local governments. Major customers increasingly want geographically diversified capacity to support long-term supply security.