Apple Supplier TSMC Plans to Increase Prices by 10% in 2027

Apple chip supplier Taiwan Semiconductor Manufacturing Company (TSMC) is planning to raise its prices by 10 percent next year. The company has reportedly discussed these plans with its primary clients already.

According to a new report from Nikkei Asia, TSMC has held talks with Apple and other clients about its plans to raise base prices by 5 to 10 percent. This increase will cover the manufacturing of both mature nodes and advanced chip processes at 7-nanometers and below.

Discussions with Apple and other clients first began in June and deals were finalized this month, according to the report. TSMC’s new pricing model will be effective as of early 2027.

The reason cited for the price increase, unsurprisingly, is down to rising costs for materials. With the current state of supplies, TSMC is increasing prices to offset costs related to manufacturing equipment and the construction and labour of building new overseas plants.

As a result of the price increase. TSMC’s clients could face costs exceeding 10 percent overall. Those placing additional high-performance computing orders beyond established forecasts will be hit with a higher 15 percent premium.

Apple is a primary client of TSMC. In fact, Apple is the largest customer of the supplier, as the company is responsible for crafting chips for its A-series and M-series processors. Apple’s A-series chips are widely used across the iPhone series, while M-series chips are used in Macs, iPads, and the Vision Pro.

This price increase would arrive as Apple prepares to release its base iPhone 18 models. 2027 is also the 20th anniversary of the iPhone, with rumours suggesting Apple may release a special model to celebrate. It’s far too early to quantify how much of an impact this may have on the pricing of Apple’s devices moving forward.

This year, Apple raised its prices on MacBooks, iPads, and more. CEO Tim Cook cited the supply constraints and production costs that are impacting the company. We have now reached a point where we need to begin raising prices,” Cook said last month.