TSMC Does Not Rule Out Price Increases as Chip Costs Rise

The world’s largest chipmaker says inflation is pushing up the cost of doing business and that increases are becoming inevitable.

TSMC semiconductor fabrication facility, as the global chipmaker signals potential price increases amid rising production costs. (Photo: Taiwan Semiconductor Manfacturing Co.)

Taiwan Semiconductor Manufacturing Co. (TSMC) makes the most advanced chips designed by companies such as Nvidia, AMD, and Apple.

Any increase in prices could ripple through AI infrastructure costs and the prices customers pay for devices, Suranjana Tewari reported for NNCF News.

However, the firm’s chief financial officer, Wendell Huang, said it would not introduce sudden “fourfold, fivefold” price increases. “We reflect our value,” he said, pointing to the company’s “technology leadership” and “manufacturing excellence.”

In an exclusive and wide-ranging interview, Huang also denied that the AI boom is a bubble and said the firm’s global expansion is not solely driven by geopolitical pressure.

The global chip industry and TSMC sit at the center of escalating US–China trade tensions, with Washington pressing leading chipmakers to expand production in the US to secure critical supply chains.

Taiwan — the US ally and self-governed island that Beijing claims — produces the majority of the world’s most advanced chips, the tiny processors used in smartphones, laptops, and AI data centers.

Chinese President Xi Jinping warned at a recent summit with US President Donald Trump that mishandling Taiwan could place the relationship between the two superpowers in an “extremely dangerous situation,” Jaltson Akkanath Chummar also reported for BBC News.