[News] TSMC Reportedly to Raise Advanced Node Prices by 5% to 10% in 2025

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With TSMC’s Arizona plant nearing its mass production in early 2025, rumors have been circulating that the foundry giant’s manufacturing costs in the U.S. are at least 30% higher than in Taiwan. Now it seems that a price hike is inevitable, as a report from the Economic Daily News suggests TSMC plans to raise prices for advanced nodes by 5% to 10% in 2025.

The report attributes the move to higher manufacturing costs, strong demand for advanced nodes amid tight capacity, and potential policy changes under President-elect Trump. The increase may come through direct price hikes or reduced discounts, the report adds.

Notably, the price hike would not be applied only to the Arizona fab. Rising costs and tight capacity in advanced nodes have driven TSMC to implement a broader price increase across its advanced processes, as per the report.

Previously, during TSMC’s earnings call, analysts have raised questions regarding its pricing strategies. As per the Economic Daily News, Chairman C.C. Wei stated that TSMC does not apply uniform pricing across all products. Wei emphasized that TSMC’s customers are focused on leading-edge development and that the company collaborates closely with them, striving to support their needs in terms of pricing and capacity.

The capacity of TSMC’s Arizona plant, featuring 4nm, has been fully reserved by clients even before its launch, the report notes. As TSMC’s investment in the facility was driven by customer commitments, and are made mainly due to geopolitical considerations, clients are said to understand the difficulties and accept the higher quotes for the U.S. fab, according to the Economic Daily News.

At TSMC’s Tool-in ceremony for the Arizona fab in December 2022, influential tech figures such as Apple CEO Tim Cook, AMD CEO Lisa Su, and NVIDIA CEO Jensen Huang attended to mark the milestone. Industry sources cited by the Economic Daily News note that Apple, AMD, and NVIDIA will be among the first batch of key customers for TSMC’s Arizona facility.

According to a previous report from Bloomberg in October, TSMC’s first fab in Arizona has achieved a major breakthrough, as the yield of chips produced is about 4 percentage points higher than that of comparable facilities in Taiwan.

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(Photo credit: TSMC)