TSMC admits it's 'jealous' of memory chipmakers' margins, but is limiting its own price hike because its customers would not survive price increases of 'four to five times'

The Taiwan Semiconductor Manufacturing Co. logo atop a building at the Hsinchu Science Park in Hsinchu, Taiwan, on Tuesday, Oct. 17, 2023. TSMC is scheduled to release earnings results on Oct. 19.

You can be sure that whatever TSMC does next, the rest of the industry will follow. Unfortunately, it looks like this major player in chip manufacturing is set to raise its prices by as much as 10% in 2027.

This is due to both the rising cost of materials as well as the company's overseas fab construction projects (such as the already booked up though not even built yet 2nm fab in Arizona). Price increases ranging between 5 to 10% will affect various chip production services offered by TSMC (via Nikkei Asia). Sources also claim that extra orders of high-performance computing chips not otherwise accounted for in customers' original forecasts will incur a 10 to 15% premium on top.