Why is TSMC raising prices on mature process nodes?

TSMC cites surging AI demand, the need to optimize its product portfolio, and increased material costs as key reasons. The shift also reflects a reallocation of production capacity toward advanced process nodes.

How will this impact the chip contract manufacturing market?

Higher prices from TSMC could trigger similar moves by competitors, increasing chip costs for end devices and intensifying competition for production capacity.

Which process nodes are considered mature?

Mature process nodes typically include technologies at 28nm and above, used in chips for automotive electronics, IoT devices, and other mass-market products.

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Hardware

TSMC to Raise Prices on Mature Process Nodes from January 2027

July 15, 2026

Photo: TechNode

Quick answer

TSMC will raise prices for mature process node contract manufacturing from January 2027 due to AI demand growth, portfolio optimization, and rising material costs.

Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest semiconductor contract manufacturer, has announced price increases for mature process node chip production services. The changes will take effect in January 2027 and will affect different customers to varying degrees. Taiwanese media report this, citing notifications sent to clients.

TSMC previously raised prices for advanced process nodes such as 3nm, but now the adjustments will also impact more mature technologies. According to Liu Pei-chen, director of the Taiwan Institute of Economic Research (TIER), capacity shortages for advanced process nodes are forcing the company to reallocate resources, reducing supply for mature nodes.

Analysts note that rising prices for mature process nodes stem from multiple factors: high demand for AI solutions, TSMC's product portfolio optimization, and increased material costs. Additionally, other manufacturers have begun taking similar steps, further influencing the market.

Mature process nodes, such as 28nm and above, are widely used in chips for automotive electronics, IoT devices, and other mass-market products. The price hike could impact the cost of end devices and intensify competition for production capacity.

Common questions

Why is TSMC raising prices on mature process nodes?: TSMC cites surging AI demand, the need to optimize its product portfolio, and increased material costs as key reasons. The shift also reflects a reallocation of production capacity toward advanced process nodes.
How will this impact the chip contract manufacturing market?: Higher prices from TSMC could trigger similar moves by competitors, increasing chip costs for end devices and intensifying competition for production capacity.
Which process nodes are considered mature?: Mature process nodes typically include technologies at 28nm and above, used in chips for automotive electronics, IoT devices, and other mass-market products.

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