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TSMC, Apple's main chip supplier, plans to raise chip manufacturing prices by 5% to 10% starting from early 2027, according to a new report from Nikkei Asia.

The increase covers both traditional manufacturing processes and advanced fabs (7nm and below), which are used to make Apple A-series and M-series chips.

According to the report, TSMC began negotiations with its clients last June, and the new prices were settled this month, and will be officially applied at the start of 2027.

It will also impose an additional premium of 10% to 15% on any chip orders exceeding expected contracts, which may raise the price of some advanced chips to over 10% above the original price.

These increases are due to rising costs of raw materials, equipment, and building new production plants abroad. TSMC decided to postpone the price hike until 2027 to give its clients time to adapt to the new prices. The company clarified that its market strategy is not opportunistic, but 'strategic' and long-term.

Apple, being TSMC's largest client, will be directly affected by these increases, especially as they coincide with the launch of the 20th anniversary iPhone models and more iPhone 18 releases in the same year.

It is not yet clear whether Apple will absorb these costs or pass them on to consumers in the form of higher device prices, especially since it has recently raised product prices significantly under the pretext of increased memory and storage costs.

This move could put additional pressure on the consumer electronics market, with the possibility that companies will introduce notable changes in flagship device pricing during 2027.

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