Apple chipmaker TSMC predicts price hikes of up to 10% in 2027

TSMC, Apple’s main chipmaker, plans to raise prices by up to 10% starting in 2027, according to a new report from Nikkei Asia.

The Taiwan-based foundry has reportedly held discussions with customers about base price increases of 5 to 10 percent, covering both mature nodes and the more advanced processes at 7 nanometers and below that Apple relies on for its A- and M-series chips. Negotiations began in June and were finalized this month, according to the newspaper’s sources, with the new pricing expected to take effect in early 2027.

Customers who place additional high-performance computing orders beyond their initial forecasts will face an additional premium of 10 to 15 percent, which could lead to some advanced chip orders costing more than 10 percent more overall.

The price increase would reflect rising costs for materials, manufacturing equipment and building new chip factories overseas.

TSMC has reportedly decided to delay the increases until 2027 to give customers time to adapt once negotiations are concluded. The company declined to comment on announced pricing, but said Nikkei Asia that its general approach to the market was “strategic and not opportunistic”.

Apple is TSMC’s largest customer, and this timing means that chip costs will rise in the same year that Apple is rumored to launch its 20th anniversary iPhone models. It remains to be seen whether Apple will absorb the increases or pass them on to customers. Last month, Apple significantly raised device prices across several product lines, which CEO Tim Cook called “inevitable,” citing soaring costs of memory and storage chips.