Technology firms around the world are dealing with growing semiconductor expenses that may soon intensify further. A fresh report shows that Taiwan Semiconductor Manufacturing Company (TSMC) intends to raise prices for chip production services next year. Customers such as Nvidia and Apple will feel the effects, and these added costs could reach end users. Rising memory expenses have already lifted mobile phone prices in various regions including India.

TSMC Expected to Implement Price Hikes for Chips

Nikkei Asia, drawing on several unnamed sources, states that TSMC will lift prices for both cutting-edge and established chip fabrication services by as much as 10 percent beginning in 2027. The company aims to counter higher outlays for materials, production equipment and overseas factory construction.

TSMC is said to have held talks with customers, with discussions running from June through July. The increases will cover the 28nm, 16nm and 12nm process nodes starting in 2027, while the 6nm node may also see costs rise by up to 10 percent next year.

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A TSMC spokesperson noted that the pricing approach remains strategic rather than opportunistic and that the firm will keep collaborating closely with clients while demonstrating its value.

TSMC currently supplies chips to leading brands such as Nvidia, Apple, Qualcomm, Broadcom, MediaTek and Intel, so the adjustments are likely to influence future smartphone processors. Devices across categories including smartphones, laptops and wearables stand to be affected.

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The decision arrives amid strong global demand for AI chips and data center equipment. Several smartphone makers have already raised device prices in recent months to manage higher chip costs. In India, smartphone shipments dropped 10 percent year-over-year during the April-June quarter, according to Counterpoint Research. The fall, the largest for a June quarter in six years, stemmed mainly from higher memory prices and softer consumer demand.