TSMC Signals Potential Price Increases Amid Rising Costs

Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest chipmaker, told the BBC that global inflation has pushed its production costs higher and that it is open to modest price increases, but that it does not anticipate any sudden “four‑fold” hikes.

TSMC’s chief financial officer, Wendell Huang, explained that the company’s core technology and manufacturing excellence justify its pricing strategy. He highlighted that the firm’s expansion into the United States, Germany, and Japan is driven by customer demand, not by pressure from Washington or Beijing.

The company’s chairman, CC Wei, mentioned at shareholders’ meeting that a price “raise” is something they would like to do, mirroring moves by competitors. Huang added that while inflation has increased costs, TSMC is careful to avoid abrupt price shocks.

With the surge in demand for AI chips, investors are uneasy about sustained valuations. Despite this, Huang insists that the AI boom is not a bubble—its core customers, the hyper‑scalers, remain financially strong and continue to invest heavily in new technology.

TSMC’s CEO remains confident that the most advanced chip production will remain in Taiwan, and that moving the entire ecosystem to the US would take “five or 10 years, or even longer.”