TSMC Set to Raise Chip Prices Up to 6% as AI Boom Keeps Foundry Capacity Tight Through 2030: Report

Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) is reportedly planning to raise wafer foundry prices by 3% to 6% starting January 2027, with steeper increases for its most advanced manufacturing processes.

Demand Now Stretches Into 2030

The company’s visibility into future demand now extends to 2030, according to a report by DigiTimes.

Prices for older, more specialized chips are rising, too. The report noted that TSMC’s mature and specialty capacity is also tightening, with 8-inch fabs reportedly operating above 100% utilization and processes at 45nm and below fully loaded.

That demand is being driven by AI-related components like power-management chips, basic transistors, and chips that control other hardware components, along with advanced packaging work such as optical communications and silicon interposers.

TSMC did not immediately respond to Benzinga’s request for comment.

Rival Foundries Could Follow TSMC

This price adjustment directly raises customers’ wafer fabrication costs, with supply chain sources noting that TSMC’s 2nm and 3nm wafers remain in short supply.

Rival foundries, including Samsung Electronics Co. Ltd. (OTC:SSNLF) and Intel Corp. (NASDAQ:INTC), could follow TSMC’s lead on pricing.

Samsung raised prices on some advanced chipmaking services by up to 15% for new orders in August, with 4nm and 5nm wafer prices for U.S. and Chinese customers up 10% to 15% since July, Reuters reported.

The Chip Shortage Could Last Until 2030

CLSA’s Bhavtosh Vajpayee told CNBC that demand for GPUs and custom AI chips currently exceeds supply by roughly 73%, and expects the shortage to persist until about 2030, calling talk of an AI semiconductor peak in 2028 “utterly wrong.”

Price Action: U.S.-listed shares of TSMC closed 1.2% lower on Wednesday at $446.57 and were down 1.51% in early pre-market trading on Thursday. Taiwan-listed shares closed 1% lower on Thursday at NT2,475 ($77.68).

Benzinga edge rankings indicate that TSMC’s stock has Momentum and Growth Scores in the 89th percentile.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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