TSMC Plans 10 to 15 Percent Price Hike Across All Process Nodes

The surge in AI demand has pushed TSMC's advanced capacity to near-full utilization, and the market now expects the world's largest foundry to follow Samsung with a 10 to 15 percent price increase across all process nodes. According to reports citing TrendForce and Nomura Securities, TSMC has already implemented up to a 15 percent increase on 3nm processes, with N2, N3, and N5 set to rise another 5 to 10 percent by early 2027 at the latest.

Capacity Is Fully Booked

Market data shows TSMC's N2 and N3 process chips are almost entirely booked by Apple and Nvidia. Intel, preparing its next-generation Nova Lake desktop processors for early 2027, will expand purchases of N2X process chips from TSMC in addition to using its own 18A process, further intensifying the capacity crunch. Mature nodes such as N12, N16, and N28, which have not seen adjustments for three consecutive years, will also receive increases of up to 10 percent.

Samsung Set the Precedent

Samsung raised foundry prices for its 4nm and 5nm processes by 10 to 15 percent starting in July, with 8nm up nearly 10 percent, according to Reuters. The pricing power restoration has helped Samsung's long-loss-making foundry business reach a turning point, with Tesla, Apple, and Broadcom among its customers. Google is reportedly negotiating with Samsung for chip production using the SF4 process.

Wall Street Raises Targets

The expected increases have led institutions including Citi, Bank of America, Goldman Sachs, and Macquarie to raise TSMC price targets, with some as high as NT$4,200. Each N2 wafer now starts at roughly $30,000, a 10 to 20 percent premium over N3, and analysts expect TSMC's advanced process utilization to stay elevated through 2027 as AI chip demand remains rigid.