Taiwan Semiconductor Manufacturing Co. is preparing to raise prices for its advanced chip manufacturing by up to 10% next year as it gears up to start production at its Arizona facility.
The world’s largest contract chipmaker faces at least 30% higher manufacturing costs in the US compared to Taiwan, according to industry sources. The company plans to implement price adjustments through direct increases and reduced discounts across its global operations, not just at the Arizona plant.
The price revision comes as TSMC’s first Arizona fab, scheduled to begin production in 2025, has already secured commitments from major customers including Apple Inc., Advanced Micro Devices Inc., and Nvidia Corp. All three companies’ chief executives attended the facility’s tool-in ceremony in December 2022.
TSMC Chairman Mark Liu previously indicated that pricing strategies vary by customer based on order volume and requirements. He noted the company aims to maintain its position as the most cost-effective manufacturer in each operating region despite higher overseas production costs in today’s fragmented global environment.
The planned increases reflect both rising costs and strong demand for advanced chips, with the Arizona facility’s 4-nanometer production capacity already fully booked by customers seeking geographic diversification of their supply chains.
