Chip Giant TSMC To Raise Prices As US Tightens Export Rules

Taiwan's top chipmaker plans price increases of up to 10 percent in 2026 while facing new restrictions on its operations in China.

A new round of price increases is coming for some of the most advanced chips on the market.

Taiwan Semiconductor Manufacturing Company (TSMC) has told major clients that it will raise prices by between 5 percent and 10 percent from 2026, according to Digitimes. The changes will apply to its leading process technologies, including 5nm, 4nm, 3nm and the upcoming 2nm lines.

The chip giant cited rising tariffs, supply chain pressures and currency fluctuations as the main reasons for the planned increases. Prices for chips used in smartphones will rise by about 5 percent, CPUs by roughly 7 percent, and components used in AI by as much as 10 percent.

It is widely reported that the increases are designed to protect margins as the firm ramps up production of its newest process nodes.

Tariffs And Costs Drive Increases

The decision comes at a time when global demand for advanced semiconductors continues to grow and marks another round of price adjustments from the chipmaker, which previously raised prices by up to 20% in 2021 during the global semiconductor shortage.

The price increases will affect TSMC's most advanced manufacturing processes, including its 3nm technology, which entered mass production in 2022 after years of development. Industry reports suggest that pricing adjustments may vary depending on agreements, customer and order sizes.

U.S. tariffs have been singled out as a significant factor behind the move. Combined with volatile currency markets and higher raw material expenses, these headwinds have created a challenging environment for chipmakers. Apple, which has historically received preferential pricing from TSMC - paying just 3 percent increases when other customers faced 20 percent hikes - may not escape these latest adjustments.

Export Restrictions In China

While preparing for higher prices, the company must also adapt to new restrictions from Washington. The U.S. government has revoked TSMC's fast-track Validated End User (VEU) status for its plant in Nanjing, China. From 31st December, all exports of US-origin equipment to that site will require specific licenses.

The change could slow upgrades and maintenance for the Chinese facility, which produces chips using 28nm and more mature process technologies. TSMC maintains it will continue to operate the plant without disruption, although obtaining new licenses may add some complexity.

The loss of special status brings the company into line with Samsung and SK Hynix, which have already faced similar measures on their factories in China. It reflects stricter export controls by Washington as competition over semiconductor technology intensifies.

With rising costs on one side and regulatory pressure on the other, TSMC is entering a period where its pricing and production strategies will be closely watched by both customers and competitors.

This article originally appeared on our sister site Computing.