TSMC to Raise Wafer Prices by 3% to 6% Starting January 2027

Taiwan Semiconductor Manufacturing Company (TSMC) is set to increase its wafer foundry prices by approximately 3% to 6% beginning in January 2027. This adjustment will affect Wafer Out prices across various processes, with the increases being more pronounced for advanced manufacturing techniques. TSMC's 8-inch factories are currently operating at over 100% capacity, and processes below 45 nanometers are fully booked, with order visibility extending to 2030.

The demand for TSMC's 2-nanometer and 3-nanometer processes remains high, contributing to a shortage in supply. Advanced packaging capacities, such as Chip on Wafer on Substrate (CoWoS), are also under pressure. Despite the impending price hikes, customers are reportedly finding it challenging to switch suppliers, indicating a strong reliance on TSMC's capabilities. The company's manufacturing facility in Arizona, USA, is experiencing higher production costs, which is reflected in the pricing strategies of other foundries, including Samsung Electronics and Intel.

In light of the rising wafer prices, integrated circuit (IC) design companies are reassessing product costs, particularly for high-end graphics processing units (GPUs) and application-specific integrated circuits (ASICs), which have more flexibility in passing on costs. The surge in demand for various semiconductor components, driven by advancements in artificial intelligence, is also influencing pricing strategies across the industry. TSMC's Chairman, Wei Zhejia, noted that customers typically do not change foundry partners solely due to dissatisfaction, emphasizing the stability of existing relationships despite market fluctuations.

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Source: KLEA News