Report: TSMC has notified customers that prices for mature process technologies will increase starting January 2027, with the expected increase being in the single-digit percentage range.

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TSMC is extending its price increase cycle from advanced processes to mature processes, a move that will have a profound impact on the cost structure of the entire semiconductor supply chain.

On Monday, according to Taiwan Economic Daily, several IC design firms have recently received notification from TSMC about planned adjustments to mature process wafer foundry prices. The adjustment will take effect in January 2027. This will be TSMC's first price increase for mature processes in over three years, with the rate currently expected to be a single-digit percentage; final pricing is expected to be determined in the fourth quarter and will vary depending on customers and product lines.

This price increase signal has a significant impact on the market. Nomura Securities predicts that prices for TSMC's 2nm, 3nm, and 5nm nodes will rise by 5% to 10% in 2027, with the range and magnitude of price hikes likely to further expand. TSMC's move will provide stronger pricing support for mature process wafer foundries such as UMC, PSMC, and VIS, driving a new wave of price increases in the industry.

AI Demand Spreads to Mature Processes

The core driving force behind this mature process price hike is the diffusion effect of AI demand. According to Economic Daily, the AI boom's pull on semiconductors has extended from advanced processes relied upon by GPUs and high-performance computing chips to mature process products like power management ICs (PMIC) and power devices.

This spread of demand is pushing comprehensive price increases in wafer foundry services. According to TrendForce data, from the first quarter to the second quarter of 2026, wafer foundry prices have generally risen, with average increase rates between 5% and 15%. The industry is currently preparing for a third round of price hikes, expected to continue from the second half of 2026 through 2027.

Cost Pressure Transmitted Along the Supply Chain

The pressure of price increases is not limited to the wafer foundry segment. According to Economic Daily, OSAT firms (packaging and testing) have raised prices one after another, causing comprehensive chip production costs to continue climbing. TSMC's mature process price increase plan for 2027 is expected to further increase the cost burden of IC design companies and trigger a new round of chip terminal price hikes.

For other mature process wafer foundries, TSMC's move has important significance as a pricing signal. According to another report by Economic Daily, UMC, PSMC, and VIS have previously raised mature process prices multiple times. TSMC's follow-up will give mature process wafer foundries more solid market grounds when seeking further price increases, and the overall pricing structure in the mature process foundry market is expected to remain strong.

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