Apple Chipmaker TSMC Plans Price Hikes of Up to 10% in 2027

[MacRumors]

Apple's principal chipmaker TSMC plans to raise prices by as much as 10 percent starting in 2027, according to a new report from Nikkei Asia.

The Taiwan-based foundry has reportedly held talks with clients about base price increases of 5 to 10 percent, covering both mature nodes and the more advanced processes at 7-nanometers and below that Apple relies on for its A-series and M-series chips. Negotiations began in June and were finalized this month, according to the publication's sources, with the new pricing set to take effect at the start of 2027.

Customers placing additional high-performance computing orders beyond their original forecasts will face a further 10 to 15 percent premium, which could lead to some advanced chip orders costing more than 10 percent extra overall.

The increased prices are said to reflect rising costs for materials, manufacturing equipment, and construction of new overseas chip plants.

TSMC reportedly decided to delay the hikes until 2027 to give customers time to adjust after negotiations concluded. The company declined to comment on the reported prices, but told Nikkei Asia that its general market approach was "strategic, not opportunistic."

Apple is TSMC's largest customer, and the timing means higher chip costs would come in the same year that Apple is rumored to launch additional iPhone 18 models as well as its 20th anniversary iPhone models. Whether Apple absorbs the increases or passes them along to customers remains to be seen. Apple last month dramatically increased device prices across multiple product lines, which CEO Tim Cook called "unavoidable," citing the soaring cost of memory and storage chips.

Article Link: Apple Chipmaker TSMC Plans Price Hikes of Up to 10% in 2027

 

[xnsys]

I thought that Apple said that when they have their own silicone, they will be able to cut prices of devices - they just keep on going up and up, where they are getting unaffordable for many.

 

[Le_Chiffre]

That’s going to sting. 😂

 

[one more]

Greed has no limits. When will people learn to share? Does every single aspiring AI race player really need to build their own server farm to succeed? Apple did a smart thing not rushing to build their own and rely on Google’s instead.

PS At the end of this race it will be Gemini on Android and Siri AI on Apple devices anyway, all the rest will most probably just go bankrupt. Apple understood this so banked on Gemini, keeping ChatGPT as an “extension” while it lasts.

 

[All Taken]

This isn't concerning. Apple has already raised prices with this in mind, I'm sure of it.

Right, Apple? Surely you won't do it again.

 

[jouster]

I thought that Apple said that when they have their own silicone, they will be able to cut prices of devices - they just keep on going up and up, where they are getting unaffordable for many.

I don't recall them saying that. Do you have a link?

Apple designs their silicon, but they do not manufacture it. The current issues are with foundries, not designers.

 

[czoli]

This isn't concerning. Apple has already raised prices with this in mind, I'm sure of it.

Right, Apple? Surely you won't do it again.

Not sure ....

 

[czoli]

Lack of competition and gigantic bonuses ... can;t wait for China to catch-up more and be able Compete

 

[Wx_Man]

That’s cool. Just solidifies my strategy to never buy a new Apple product again. 2 year old or two generation old devices from the used or refurb market for me. Until the AI madness subsides in 10-15 years buying new is for chumps and influencers. Which is a fine line looking for an even finer distinction.

 

[macfacts]

Lack of competition and gigantic bonuses ... can;t wait for China to catch-up more and be able Compete

There's only one iOS device manufacture, you're locked in.

 

[Wx_Man]

Greed has no limits. When will people learn to share? Does every single aspiring AI race player really need to build their own server farm to succeed? Apple did a smart thing not rushing to build their own and rely on Google’s instead.

PS At the end of this race it will be Gemini on Android and Siri AI on Apple devices anyway, all the rest will most probably just go bankrupt. Apple understood this so banked on Gemini, keeping ChatGPT as an “extension” while it lasts.

Not really. Claude, ChatGPT and Grok have entwined themselves like a vampire squid in all halls of the US government particularly the military. They’re all considered national security assets and will never be allowed to fail, only transferred to another AI player or taken over by the Trump admin like they did Intel.

 

[TIMO_737]

This is getting out of hand. Costs certainly went up. But now they're just getting greedy. Oh well. Guess we'll just have to buy a 12,000 dollar iPhone in 2029 then. Jeeez

 

[Nyx1]

What the next move uncle John?

 

[one more]

Not really. Claude, ChatGPT and Grok have entwined themselves like a vampire squid in all halls of the US government particularly the military. They’re all considered national security assets and will never be allowed to fail, only transferred to another AI player or taken over by the Trump admin like they did Intel.

Will the US government be prepared to regularly inject lots of funds into all of them, you reckon? Surely at some point some of them will be dropped out, as being less performant or/and too expensive for the US budget.

 

[one more]

This is getting out of hand. Costs certainly went up. But now they're just getting greedy. Oh well. Guess we'll just have to buy a 12,000 dollar iPhone in 2029 then. Jeeez

Nah, the AI mad race should be over by then.

 

[Isentropic]

I went back to a traditional watch after six years, and I love it! No distractions, less anxiety about any potential notifications or someone trying to contact me. One less chip to worry about.

Not even sure why I replaced the battery on my series 5 watch (officially via Apple) a couple months ago. Oh well,
🙂

 

[TVreporter]

Forcing many of us to not bother to buy new.

Can the AI bubble just burst now.

 

[Plutonius]

Not all price increases are due to AI although many companies are using the AI excuse to justify the price increases.

 

[boswald]

I just found this article: https://www.guru3d.com/story/tsmc-c...uld-require-tsmc-to-generate-part-of-its-own/

Does this mean prices will bo up even further?

 

[boswald]

Forcing many of us to not bother to buy new.

Can the AI bubble just burst now.

I guess even an iPhone AIR 2 will be out of my price range now as well. They really don't want lower middle-class to afford their stuff, do they?

 

[bLackjackj]

Oh how the tables have turned,..from screwee to screwer 🤩👏

 

[thebellnd]

If Apple were to take a hit on margins, it would be a tragedy for investors and potentially a lawsuit. Costs must be passed to the consumer, but only if savings can't be made from using other cheaper components.

 

[xnsys]

I don't recall them saying that. Do you have a link?

Apple designs their silicon, but they do not manufacture it. The current issues are with foundries, not designers.

Sure

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[ThailandToo]

I thought that Apple said that when they have their own silicone, they will be able to cut prices of devices - they just keep on going up and up, where they are getting unaffordable for many.

I don’t think they said they would cut prices for consumers. I am pretty sure they meant they won’t be reliant on Intel’s slow and impossibly bad x86 and they won’t give a percentage of their profits to Qualcomm when they can get rid of them. So I think they have cut costs tremendously and given all the benefits to shareholders not customers!

And I think it’s their own doing why memory and SSD pricing has gotten so out of control. We need new players in that game not the past players that were all squeezed to death by Tim Crook! I believe it, as it’s the true way big business try to use their economies of scale to squash even their own stakeholders - aka in this instance SUPPLIERS! Everyone loses except the executives who get the bonuses for screwing over the stakeholders except the shareholders who reap the most massive profits. This is the dirty work of a Crook’ed one-minded CEO who truly only cares about his own profits as a result of everything he has done. Has he made a lot of people wealthy, yes! 99% of them shareholders! Who paid for it? - everyone except the shareholders and executives who did the dirty work.

 

[neuropsychguy]

I thought that Apple said that when they have their own silicone, they will be able to cut prices of devices - they just keep on going up and up, where they are getting unaffordable for many.

Apple never promised that Apple Silicon would make Macs broadly cheaper. Analysts speculated that Apple’s lower chip costs might lead to lower prices (and it did in some cases -- Mac Mini, MacBook Neo), but Apple’s actual claims focused on performance, efficiency, and integration.

Also, the fact that prices did not fall (ignoring inflation adjustment, currency conversions, tariffs, supply chain disruptions and changes, etc.) does not mean Apple Silicon had no effect on pricing. Macs may be cheaper than they otherwise would have been without Apple Silicon, or may deliver substantially more performance at the same price, because Apple avoided Intel’s margins and gained more control over its hardware costs.

You cannot determine the effect of Apple Silicon simply by comparing today’s sticker price with an older Mac’s price especially without looking at broader economic factors.