TSMC to raise prices by up to 10% in 2026, citing US tariffs as a factor

[midian182]

Rumor mill: TSMC looks to be raising the price of its advanced nodes, and the company is blaming tariffs imposed by the Trump administration as one of the factors for its decision. The report comes just as the semiconductor giant's revenue jumped 18.5% to $30.24 billion and its market share hit a record 70.2%.

TSMC plans to increase the price of its advanced nodes by 5-10% in 2026, according to a report by DigiTimes. The hike covers its 5nm/4nm, 3nm, and 2nm processes, and foundry customers have already been informed that they will be paying extra.

The exact increases will vary based on the customer, the application, and the order volume. The lowest 5% hike is expected to be applied to smartphone and mobile chips. Orders for CPUs will go up around 7%, and high-performance computing and AI chips will rise up to 10%.

TSMC's Fab 20 will be its main 2nm production facility

TSMC already charges huge amounts for its services. The N2 process wafers are reportedly around $30,000 each, a price that reflects the high-cost nature of gate-all-around (GAA) architectures and cutting-edge manufacturing complexity. N3 wafers cost anywhere from $20,000 to $25,000, while 5nm wafers are around $16,000. Rumors suggest that TSMC's next-generation Angstrom-era nodes, such as A16 (approximately 1.6 nm), could cost as much as $45,000 per wafer.

While advanced wafers look set to become even more expensive, TSMC could discount its older nodes.

Also read: Apple secures half of TSMC's 2nm chip production for iPhone 18

TSMC is reportedly introducing the price hikes to offset the US tariffs. Trump did announce a 100% tariff on semiconductors in August, but those companies who have committed to making chips in the US, including TSMC, will be exempt.

In June, CEO C.C. Wei said that US tariffs do have some impact on the firm, "but not directly. That's because tariffs are imposed on importers, not exporters – and TSMC is an exporter." However, he acknowledged that tariffs could drive up prices and indirectly affect demand.

The world's largest chipmaker is also pointing the finger at supply chain disruptions, the appreciating New Taiwan dollar, and rising costs stemming from its US operations for its need to raise prices. In July, AMD boss Lisa Su said TSMC chips made in the US cost up to 20% more, adding that the extra expense was worth it.

TSMC has just announced its foundry market share has risen to a record 70.2%, helping push revenue to a massive $30.24 billion during the second quarter, an 18.5% QoQ increase.

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TSMC to raise prices by up to 10% in 2026, citing US tariffs as a factor

 

[wiyosaya]

Surprise, surprise! Trump's Tariffs put a damper on yet another business.

 

[nnguy2]

I was told China was going to pay for it!

 

[Theinsanegamer]

I'm sure having an effective monopoly and raising prices every year has nothing to do with this.

 

[Rudyduu]

Why would a US tariff cause a company outside of the US to raise prices? The tariffs cost the importer not the manufacturer. AMD, NVIDIA and TSMC's other customers who import products to the US would raise their prices due to tariffs not TSMC.

 

[wiyosaya]

I'm sure having an effective monopoly and raising prices every year has nothing to do with this.

And taking partial ownership in the company of long-time BS is supposed to combat a monopoly?

Me thinks Intel is a bad investment for US citizens. Chalk one up for more Intel BS and their ability to DUPE "stable geniuses."

 

[Neatfeatguy]

Surprise, surprise! Trump's Tariffs put a damper on yet another business.

Maybe you'll be happy to know that US tariffs for Taiwan's main exporter TSMC, since they have factories in the US, TSMC is exempt - as already stated in the story.

Or you can also ready about it here:

TSMC gets a reprieve from Trump's 100% chip tariffs thanks to its U.S. factories, Taiwan says

There had been hopes TSMC's plan to invest an additional $100 billion in the United States would shield Taiwan from new tariffs.

fortune.com

TSMC doesn't know if any prices will impact them, as it says in the story as well:

In June, CEO C.C. Wei said that US tariffs do have some impact on the firm, "but not directly. That's because tariffs are imposed on importers, not exporters – and TSMC is an exporter." However, he acknowledged that tariffs could drive up prices and indirectly affect demand.

Right now it's just conjecture. To me it sounds like an excuse just to raise prices like they did last year so they can further pad their pockets for themselves and their investors.

 

[yRaz]

And taking partial ownership in the company of long-time BS is supposed to combat a monopoly?

Me thinks Intel is a bad investment for US citizens. Chalk one up for more Intel BS and their ability to DUPE "stable geniuses."

It's better than the billions we have TSMC in tax breaks and grants that they took and ran. At least with Intel we can go back and say, "oh no, we own you now, you don't get to play these games"

 

[Axeia]

Monopolist raises prices because they can. In other news, water is wet

 

[Kashim]

It's funny to see the Trump supporters always trying to explain away tariffs. Apparently tariffs have absolutely no negative impact on anything, especially not on inflation or prices.

Yes, TSMC is using tariffs as an excuse to raise prices and so are countless other companies. So what? Big corporations exist to make money and they'll use any excuse to make more. You clowns would do the exact same thing in their position.

Just because a company is using the tariffs as an excuse to raise prices does not mean tariffs have zero impact on anything. In fact, an indirect impact of tariffs *is* that these companies can use them as an excuse to raise prices. Eat that Trump supporters (like Walmart is supposed to eat the Orange tariffs.)

 

[Porkous]

Except it's nothing to do with the tariffs that

Can you explain to me how a relatively small company like TSMC, with revenue of only about $30 billion, can sustain and feed an industry worth trillions of dollars? Unlike some companies that operate mainly in the digital space, TSMC has tangible assets and cutting-edge physical technology. It’s not like Intel, for example, where even if they fall behind in technology, they can still sell processors and maintain some market presence.

TSMC, on the other hand, is taking massive risks. If they fall behind in the technology race, recovery might not be possible, given their enormous investments in fabrication plants. A chip design company that stumbles can often bounce back the following year—but factories don’t recover nearly as easily.

 

[airbornex]

TSMC basically runs the global silicon cartel at this point—70% market share, $30k wafers, and Apple buying half the 2nm supply. Everyone else is just paying rent to live in Moore’s Law.

 

[Liranan]

Soon enough dual core CPU's will cost 1000 USD.

What will those who claim that monopolies don't affect the world say then?

 

[Starfals]

This is why Trump ruined the whole world. Greedy companies love to find a reason to make it more expensive for everyone. Great. People said it wont happen outside the US, guess again...

 

[Neatfeatguy]

This is why Trump ruined the whole world. Greedy companies love to find a reason to make it more expensive for everyone. Great. People said it wont happen outside the US, guess again...

I guess greed wasn't a thing until Trump came along.....

 

[maxxcool7421]

Given the USA cannot EVER compete with all the non-US fabs, TSMC should triple the prices right now because at some point our convicted sex abuser of a president will fling random terroriffs at TSMC because he woke up grumpy. why not start start the war right? after all we are only 330 million people versus the other 7.7 billion people on the planet. the US loses every time with those odds.