The Electronics You Rely On Every Day Could Cost Even More By 2027
Taiwan Semiconductor Manufacturing Co. (TSMC) will reportedly raise prices for chip production services by 10% in 2027, according to Nikkei.
Taiwan Semiconductor Manufacturing Co. (TSMC) will reportedly raise prices for chip production services by 10% in 2027, according to Nikkei.
TSMC serves as the world’s largest chip manufacturer and produces semiconductors for computer companies such as Apple, Google and Amazon. The chipmaker reportedly held discussions with clients about increasing prices for both advanced and more mature chips due to increasing costs for materials, manufacturing equipment and construction of overseas chip plants, according to Nikkei.
Computers use advanced chips for high-end functions such as artificial intelligence (AI) processing, while everyday consumer products use mature chips for power management and sensors, according to Nikkei.
The Taiwanese company produces more than 90% of the world’s most advanced chips, according to the Global Taiwan Institute.
TSMC finalized negotiations in July and the company will raise prices starting at the beginning of 2027, the outlet wrote, citing people with knowledge of the proceedings.
The company did not respond to a request for comment from the Daily Caller News Foundation.
“TSMC does not comment on pricing. Our pricing strategy is strategic, not opportunistic. We will continue to work closely with customers and sell our value to them,” the company told Nikkei in a written statement.
The company warned that America’s war against Iran would add more pressure on critical gas supplies and may lead to increase in costs.