Due to the extremely tight production capacity of advanced processes at 3nm and below, TSMC has reached communication with major customers and plans to increase its quotations for four consecutive years from 2026 to 2029.Among them, the new quotation for 2026 will take effect from New Year's Day. However, even if TSMC raises demands for price increases, customers are still actively booking advanced process production capacity.
Market forecasts indicate that TSMC's traditional off-season performance in the first quarter of 2026 is expected to be at least flat or even slightly higher, hitting the busiest first quarter in history.
The main reason for TSMC's off-season is the frantic competition for next-generation platform production capacity by major customers such as NVIDIA and AMD. In addition, non-Apple customers such as Broadcom are also actively expanding AI application fields, resulting in a long-term shortage of advanced processes.
It is reported that TSMC’s price adjustment range in 2026 is expected to be between 3% and 10% in the single digits. The specific increase will vary according to the procurement level and specific process nodes.
TSMC responded that "pricing is always strategy-oriented, not opportunity-oriented" and aims to reflect the increase in production costs through price adjustments and continue to provide core value to customers.
