Taiwan Semiconductor launches a "four consecutive years of price increases" plan, with an estimated increase of about 5-10% for processes below 5 nanometers

Industry insiders reveal that Taiwan Semiconductor has notified customers that starting in September, it will implement a four-year continuous price increase plan for advanced processes below 5 nanometers. The industry describes this as "the first long-term price increase action since the AI era." Chip designers point out that this price adjustment may mean a gradual reduction in production capacity for mature processes above 7 nanometers, with AI, servers, and high-performance computing (HPC) applications becoming the main beneficiaries. Observers note that Taiwan Semiconductor's rare initiation of a four-year price increase aligns with MediaTek's mention in its earnings call of "reflecting cost adjustments in chip prices," which is expected to trigger the next wave of chip price increases. Taiwan Semiconductor has not responded to the price increase rumors, but market research institutions indicate that with global inflation prevailing and the rising production costs due to Taiwan Semiconductor's overseas factories, it is estimated that starting in 2026, the prices for advanced processes will increase by about 5-10% to maintain high profit margins