TSMC to Raise Foundry Prices by About 10% Next Year

Some advanced chips may face steeper increases

Taiwan Semiconductor Manufacturing Co., the world's largest foundry chipmaker, plans to raise production and service charges by about 10% next year.

Nikkei Asia reported on July 22 that TSMC decided to increase prices for non-memory chip manufacturing from 2027, citing higher raw-material and chipmaking equipment costs, as well as rising expenses for new plant construction. The increase will vary by customer and product, but chips made on 12-nanometer, 16-nanometer and 28-nanometer processes may see prices rise by as much as 10%.

Price increases for some advanced chips could exceed 10%. If orders for high-performance computing chips come in above demand forecasts, TSMC plans to impose an additional 10% to 15% on top of the base increase. The company said it chose next year rather than the second half of this year for the increase to give customers enough time to prepare.

Chipmakers have been raising prices this year, including non-memory manufacturers such as TSMC and Intel Corp. and memory makers including Samsung Electronics Co. and SK Hynix Inc. Demand has surged with the data-center boom, while supply has failed to keep pace. TSMC's announcement on July 22 stands apart from other chipmakers' price increases because it cited rising manufacturing costs in addition to supply-demand imbalances. Earlier this year, TSMC also warned of pressure on supplies of helium and other gases used in chip production, along with higher costs, because of the war between the US and Iran. The additional price pressure is stoking concern that "chipflation" — inflation driven by rising semiconductor prices — could intensify.

Son Ju-hyung, Hankyung.com reporter handbro@hankyung.com