TSMC has secured orders through 2030, reflecting sustained high demand for its semiconductor manufacturing services. Starting in January, the company plans to increase its production prices by 3 to 6 percent.
Production facilities, including those utilizing older 200mm wafer technology, are currently operating at over 100 percent capacity. High utilization rates are observed across all segments, specifically for processes at 45nm and below.
The company's Arizona plant faces higher operational costs, which influences pricing for local clients. TSMC is also redistributing expenses from its U.S. projects to global product costs due to currently modest sales volumes in the American market.
Major clients like Apple, Nvidia, and Google are unlikely to switch suppliers due to the risks associated with long production cycles. Demand remains particularly strong for 3nm and 2nm processes, as well as CoWoS packaging services.
Other contract manufacturers, including Samsung and GlobalFoundries, are expected to follow TSMC by raising their own prices. The broader industry trend of rising costs for chips, PCBs, and assembly is projected to drive up electronics prices in 2027.
