TSMC’s prices for advanced process technology are rumored to increase by 5-10% in 2025

With the start of mass production of chips at TSMC’s Arizona plant approaching in early 2025, rumors have surfaced online that the company’s production costs there will be at least 30% higher than in Taiwan. In this regard, an increase in prices for its products seems inevitable. In particular, according to the Economic Daily News resource, TSMC plans to raise prices for advanced technological processes by 5-10% in 2025.

Image Source: TSMC

According to the Economic Daily News, the rise in prices is due to higher production costs, strong demand for advanced processes amid limited capacity and potential policy changes following the election of Donald Trump as US president. TSMC may simply raise prices or cut discounts on its products, the resource writes. In any case, its customers will have to pay more.

Moreover, we are talking not only about the future products of the TSMC plant in Arizona. Rising costs and limited capacity for advanced process technologies are forcing TSMC to raise prices across all its plants, Economic Daily News reported.

Earlier, during a conference call dedicated to TSMC’s quarterly report, analysts asked questions regarding the company’s pricing strategy. In response, TSMC CEO C.C. Wei said that TSMC does not have uniform pricing for all of its products. He emphasized that TSMC’s customers are focused on cutting-edge developments, and the company is committed to meeting their needs in terms of pricing and performance.

According to Economic Daily News, even before TSMC launched production in Arizona, the plant’s capacity was already fully reserved by customers. Because TSMC’s investment in the facility was driven largely by customer commitments and geopolitical issues, the resource says customers understand this and accept higher prices for the company’s U.S. plant. Early key customers for TSMC’s Arizona plant include tech giants Apple, AMD and NVIDIA, industry sources told Economic Daily News.