Apple Chipmaker TSMC Plans Price Hikes of Up to 10% Starting in 2027

Apple's primary chip supplier TSMC is preparing significant price increases beginning in 2027, according to an exclusive report from Nikkei Asia. The Taiwanese foundry, which manufactures all of Apple's A-series and M-series processors, has concluded negotiations with customers to raise base prices by 5% to 10% across both its most advanced nodes and mature production processes.



The price hikes, which take effect at the start of 2027, apply to everything from cutting-edge 7-nanometer-and-smaller chips to mature 12nm and 16nm processes. Customers that exceed their original order forecasts will also face an additional 10% to 15% premium, meaning some orders could cost substantially more than the base increase alone. TSMC attributed the increases to rising costs for materials, manufacturing equipment, and construction of new overseas fabs. In a statement to Nikkei, the company described its pricing strategy as "strategic, not opportunistic."


The planned increase adds to Apple's broader cost pressures. The company raised prices across its Mac and iPad lineups last month in response to an industry-wide memory shortage, and CEO Tim Cook warned in June that such increases were unavoidable. Since TSMC's new pricing will not take effect until 2027, any impact on Apple's products would come with models introduced that year and later.

Whether Apple absorbs the higher manufacturing costs or passes them on to customers remains to be seen. Please download the iClarified app or follow iClarified on X, Facebook, YouTube, and RSS for updates.