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

The increase includes 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 in June last year, and the new prices were finalized this month, to be officially applied at the beginning of 2027.

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

These increases are due to rising costs of raw materials, equipment, and building new overseas production plants. TSMC decided to postpone the price increase implementation 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, as 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 citing increases in memory and storage costs.

This step may put additional pressure on the consumer electronics market, with the possibility that companies will impose noticeable changes in flagship device pricing during 2027.

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