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TSMC Chip Price Hikes Threaten Further Apple Price Increases

9to5Mac •
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Apple has already raised prices significantly across most products, citing high memory costs, with some upgrades doubling in price. The company claimed it was "working tirelessly" to address the issue, but 9to5Mac readers overwhelmingly expect permanent increases and plan to upgrade less frequently. Now TSMC, Apple's chipmaker, plans to raise chip fabrication prices by up to 10% in 2027, according to Nikkei Asia.

Increases of 5% to 10% have been negotiated with clients for both advanced and mature chip production, reflecting rising material, equipment, and overseas plant construction costs. TSMC may also add a 15% premium for orders exceeding initial forecasts, potentially impacting Apple if demand is underestimated. TSMC declined to comment but noted it continues to sell the value of its services.

The company recently suggested it may build 12 Arizona chip plants, though skepticism remains. These compounding cost pressures suggest further Apple price hikes are likely.