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Taiwan Semiconductor Manufacturing Co. (TSMC)’s new fab in Arizona has become a pivotal partner in realizing the “Made in America” push by global chipmakers. According to a report by the Economic Daily News, market sources suggest that TSMC is considering raising prices for 4nm chip production at its U.S. facility by as much as 30%, citing robust demand and rising costs.
TSMC is set to hold its earnings call today (April 17), and is currently in a pre-earnings quiet period. When asked about the reported price hike, the company declined to comment on market speculation or pricing issues.
The Economic Daily News report also cited industry sources who noted that, in line with TSMC’s corporate culture, the company has traditionally avoided opportunistic price hikes driven by short-term factors. They added that raising prices exclusively at the Arizona plant while keeping rates unchanged in Taiwan would seem inconsistent, making pricing strategy one of the key issues likely to draw attention during today’s earnings call.
From a customer standpoint, major semiconductor players such as NVIDIA and AMD have both unveiled plans to expand U.S.-based manufacturing, with TSMC’s Arizona capacity playing a central role in their strategies.
AMD CEO Lisa Su recently highlighted that production of the company’s fifth-generation EPYC server processors at TSMC’s Arizona fab is progressing smoothly. Meanwhile, NVIDIA announced that its next-generation AI chip, Blackwell, has entered production at TSMC’s Phoenix fab. The chipmaker is working with key Taiwanese partners such as Foxconn and Wistron at their U.S. sites to achieve a fully localized AI server production milestone—marking the first end-to-end manufacturing of AI servers on American soil.
TSMC Chairman C.C. Wei previously stated in the last quarterly earnings call that the company’s first Arizona fab, which utilizes the 4nm process, had entered mass production in Q4 2024. The yield rate is reportedly on par with that of its Taiwan-based fabs, and volume production is expected to ramp up smoothly.
(Photo credit: TSMC)
