Demand for TSMC’s advanced semiconductor technology (2330) continues to exceed supply, so the company has begun negotiations on prices for 2026 in advance.
Demand for TSMC’s advanced semiconductor technology (2330) continues to exceed supply, so the company has begun negotiations on prices for 2026 in advance.
According to Taiwan’s Economic Bulletin, TSMC has been communicating with customers since September about possible price increases for advanced chip production to compensate for rising production costs. The level of the increase will depend on the category of purchases and the terms of cooperation with specific customers.
Analysts predict that prices for the latest chips will increase by 3-10% in 2026, which will be the fourth consecutive year of price increases for TSMC. Overall, the increases will be moderate, which will help maintain the stability of partnerships, while at the same time increasing the company’s revenue and profits.
In particular, the 3nm technology, which is in the greatest demand, could see a double-digit percentage increase in price. Analysts had previously forecast +3% in 2026 for this segment.
TSMC has always emphasized a strategic approach to pricing: the company does not raise prices randomly, but takes into account long-term customer relationships. For example, during the COVID-19 pandemic, prices were not increased, and in 2020-2021, TSMC twice canceled initial sales discounts, only restoring them in 2023.
The main drivers of the company’s growth remain 5nm and 3nm chips: in the second quarter of 2025, they provided 60% of revenue, in the third — the same share (3nm — 23%, 5nm — 37%).
With its leadership in chip manufacturing and no alternatives, TSMC expects further revenue and profit growth, especially from the use of AI. Analysts have already raised their medium- and long-term revenue forecasts for AI applications: they were originally expected to account for 35% of total revenue by 2028, but now this could be achieved this year or next.
