TSMC chip price hikes could push Apple prices higher

Apple may be facing another round of cost pressure. After already raising prices across most of its products, the company could soon be hit by higher chip manufacturing costs as TSMC prepares to charge more for fabrication services.

Apple said last month that it could no longer absorb sharply higher memory costs, and responded with price increases that in some cases exceeded 50%. According to the report, memory and storage upgrades doubled in some configurations. Apple said at the time that it was “working tirelessly” to find solutions.

9to5Mac says most of its readers were unconvinced, expecting the higher prices to stick and saying the increases would affect buying behavior, mainly by stretching upgrade cycles.

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Now Nikkei Asia reports that TSMC plans to raise prices for both advanced and mature chip production by up to 10% in 2027. The report, citing multiple sources, says negotiations with customers are already complete, with increases ranging from 5% to 10%.

TSMC may also charge a premium of up to 15% if customers raise orders above their original forecasts. That could matter for Apple if it underestimates demand for a new device and needs extra chip capacity.

TSMC declined to comment, saying only that it continues to work closely with customers to demonstrate the value of its services.

The report also notes that TSMC recently said it may build 12 Arizona chip plants in total, though 9to5Mac says there are reasons to be skeptical.