TSMC Plans 5-10% Foundry Price Hikes to Boost Margins by 2pp
TSM•TSMC is raising prices 5%-10% on leading-edge 7nm-and-below foundry services, representing 75% of revenue. The average 5% increase could boost full-year gross margin by over two percentage points while the company expands nine new fabs and ramps 2nm and A16 chip output at a 70% CAGR through 2028.
1. Foundry Price Hike
TSMC is raising prices by 5% to 10% on leading-edge 7nm-and-below foundry processes, which represent about 75% of its total revenue.
2. Margin Impact
An average 5% price hike could boost full-year gross margin by over two percentage points, enhancing overall profitability.
3. Capacity Expansion
The company will bring online nine new wafer fabs and advanced packaging phases in 2026, including expansion of its Arizona facilities, to increase capacity.
4. Advanced Node Growth
Output of 2nm and A16 chips is projected to grow at around a 70% compound annual growth rate from 2026 to 2028, driven by AI and high-performance computing demand.
