TSM Stock Jumps Overnight On Reports Of Foundry Price Hike Amid Massive Capacity Expansion

• Assuming an average 5% price rise, the hike could give TSMC a boost of 2 percentage points or more to full-year gross margin, reported Culpan, a noted supply chain journalist.
• TSMC watched its memory counterparts enjoy higher prices and wanted in on the action; its leaders have communicated internally.
• Stocktwits sentiment for TSMC shifted to ‘neutral’ from ‘bearish.’

U.S.-listed shares of Taiwan Semiconductor Manufacturing Co. rose 1.4% in overnight trading ahead of Wednesday, following fresh reports that the world’s largest contact chipmaker is raising prices across several of its foundry services.

Over the last few months, TSMC has informed customers about upcoming price increases, Tim Culpan, a former Bloomberg columnist and noted supply chain journalist based in Taiwan, reported on Tuesday.

The company is raising prices between 5% and 10% on all leading-edge 7nm-and-below chip manufacturing processes, which account for about 75% of TSMC’s total revenue, Culpan reported in his newsletter, Culpium, citing sources.

Assuming an average 5% price rise, the hike could give TSMC a boost of 2 percentage points or more to full-year gross margin, according to Culpium analysis. Price rises have already started rolling out.

TSMC To Follow Memory Chipmakers In Raising Prices

Sources told Culpan that TSMC's business development and sales teams have been told by senior leadership to find ways to charge more. Taiwanese foundry watched its memory counterparts enjoy higher prices and wanted in on the action, they said.

Samsung, SK Hynix and Micron jacked up prices between 65% and 90% in the first quarter alone, helping them raise gross margins by as much as double, according to the report.

Notably, outgoing Apple CEO Tim Cook recently said the memory price hikes had become an "unsustainable situation” and that the iPhone maker had no option but to raise its product prices.

TSMC Capacity Expansion

TSMC has said it has been expanding capacity at a faster pace in ​2025 and 2026 and plans to build nine phases of wafer ⁠fabs and advanced packaging facilities this year.

Production of its most advanced 2nm and next-generation A16 chips is projected to expand at a compound annual growth rate of around 70% between 2026 and 2028. The ramp reflects sustained demand for advanced nodes, particularly from AI and high-performance computing customers.

Geographically, the company is accelerating its global footprint. In Arizona, the first fab is already in production, with tool move-in for the second fab slated for the second half of 2026 and construction underway for a third

In Japan, the first fab is in volume production at 22nm and 28nm, while the second fab has been upgraded to 3nm. In Germany, the under-construction fab will initially focus on 28nm and 22nm processes before expanding into 16nm and 12nm technologies.

TSMC Retail View, Stock Move

On Stocktwits, the retail sentiment for TSMC shifted to ‘neutral’ from ‘bearish’ the prior day.

“$TSM I'll admit i got smoked here today, but not because the TSM business model story has suddenly changed. The need for their wafers exclusively  did not just go away. block out the noise and think rationally. Long and strong on TSM!” said a trader.

TSMC’s revenue and profits have been rising steadily amid record demand for advanced chips used in data centers. Apple, Nvidia, and AMD are some of its largest customers.

TSM stock hit a record high on Monday, before dropping 6.7% the next day amid a market-wide selloff. Year to date, shares are up over 44%, compared to the 7.6% gain in the benchmark S&P 500 index.

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