TSMC May Hike Chip Prices 10-30%

The world's largest chipmaker, TSMC, has not ruled out price increases due to rising production costs. Officials said inflation is pushing up the cost of doing business.

The world's largest chipmaker, TSMC, has not ruled out price increases due to rising production costs. Officials said inflation is pushing up the cost of doing business.

Meanwhile, other major players like Texas Instruments and Analog Devices have already raised prices. Texas Instruments initiated the repricing cycle in August 2025 with price increases covering more than 60,000 product SKUs, with hikes ranging from 10% to over 30%.

Despite this, TSMC is working hard to meet chip demand and would like to hike prices, according to sources confirmed.

Industry-Wide Price Hikes

Analog Devices, the second-largest player, informed customers of a new round of increases effective February 1, 2026. ADI's increases are tiered by product grade: standard commercial parts are expected to rise 10-15%, industrial-grade products around 15%, and nearly a thousand military-specification parts.

C.C. Wei, TSMC's CEO, said customers are still upbeat on the outlook for artificial intelligence, but the company is striving to keep up with demand.

However, NXP's adjustments are expected to take effect on June 1, 2026, but details on how much of an increase the market might have to absorb are scarce.

Rising Costs Drive Price Hikes

The drastic price increase is broad-based and is across DRAM, NAND, and Logic. Given that 5nm is in production today, this is not a prediction, but a trend that's going to continue.

Experts said the primary driver is not only the rising costs of tools such as EUV, but the rising number of steps to make a chip.

In contrast, the rising costs of raw materials, energy, and labor are also contributing to the price hikes.

Geopolitical Dimension

There is a geopolitical dimension at play as well. Apple has reportedly set a strategic objective to diversify its supply chain.

However, this may not be enough to mitigate the effects of the price hikes.

Historically, the semiconductor industry has been prone to fluctuations in demand and supply, leading to price volatility.

Human Impact

The price hikes are expected to affect a wide range of industries, from automotive to industrial and embedded processing.

Witnesses said the hikes will be felt across a wide swath of end markets already struggling with high prices and tight product availability.

Meanwhile, government sources said the price hikes may have a significant impact on the overall economy, particularly in countries with a large manufacturing sector.

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