TSMC, the world’s largest chip manufacturer, is preparing to increase its prices for advanced production processes. This move of the company will directly affect the production costs of giant technology companies such as Apple, Nvidia, AMD and Qualcomm.

According to the notifications, price increases will cover not only the latest 3nm technology, but also 7nm and other advanced processes. These processes account for approximately 74 percent of the company’s total chip manufacturing revenue.

Comprehensive Price Update

According to the information provided by TSMC to its customers, price increases are expected to vary between 5 percent and 10 percent. While the new price structure has already been put into effect for some customers, others have been informed to take these costs into account when making future orders.

The company declined to comment in detail, stating that its pricing strategy is rather strategic than opportunistic. This decision of the administration, which previously stated that it would keep prices constant, is associated with increasing inflation and global expansion costs.

While 3nm production technology accounts for 25 percent of the company’s first quarter revenues of 2026, all advanced technologies of 7nm and above correspond to 74 percent of total revenue. The inclusion of the 7nm process in this increase means that costs will increase for many high-performance processors and network hardware in the industry.

Sectoral Impacts and Market Dynamics

TSMC has a strong bargaining position due to high demand for artificial intelligence chips and limited production capacity. While the company increases its 2026 revenue growth target to over 30 percent, it continues to increase its production capacity in Taiwan, the USA, Japan and Germany.

On the end user side, this situation is not expected to have a direct impact on GPU, CPU and smartphone prices. The increase in manufacturing costs, combined with other factors such as memory prices and packaging restrictions, could put additional pressure on device manufacturers. What kind of response do you think TSMC’s strategic pricing initiative will find in the technology world?