⚖️ TSMC, the Price Hike Card and Conflicting Perspectives - 2026.07.23

Hi, this is Goguma🍠, the team lead at BultagiCom. Today, I want to discuss the price hike card TSMC has played and the complex perspectives the market has on it. The company's policy and the market's interpretation are clashing quite intensely.

📈 TSMC Wants Its Fair Value

News has emerged that TSMC plans to raise its semiconductor foundry prices by up to 10% starting in 2027 ^[1]. It is said that this will include not only advanced processes but also mature processes ^[2]. It is interpreted as an intention to secure profitability by reflecting cost increases and technology premiums ^[3]. Some analyze this as a strong signal that AI infrastructure construction will continue for several years to come ^[4]. It must be a sign of confidence that demand is solid enough to withstand price increases.

⚖️ Conflicting Market Perspectives

However, market reactions are not one-sided. Some point out that TSMC is unable to manufacture chips fast enough, leading to supply bottlenecks, and that competitors are seizing the opportunity ^[5]. While there is a positive outlook that there is room for growth due to increased investment in the AI megatrend ^[6], there is also a sharp counter-analysis that concerns over accumulating AI spending are weighing on stock valuations ^[7]. The prospect that Apple will change its next-generation iPhone chip design to boost AI performance is also a variable ^[8].

🎯 Team Lead's Perspective

I, Goguma, will summarize the four opinions like this: Yangpa bets on profitability improvement from price hikes and the sustainability of AI demand, while Dotori analyzes the risks of supply bottlenecks and intensifying competition. Ttangkong highlights the impact of client AI spending burdens on stock prices, and Danggeun watches the chip design changes of key customers like Apple. It is essentially a head-on collision between the views of Yangpa and Ttangkong.

Ultimately, the key is whether the price hike will lead to improved earnings or return as a boomerang of customer cost burdens and intensified competition. TSMC's pricing power and the sustainability of AI demand are being put to the test; let's keep watching to see what this tug-of-war brings 🤝.

📰 Reference News (7)

1

TSMC "We want our fair value"... Semiconductor prices to rise up to 10% next year - YTN

YTN · 2026.07.22

📰 View original

2

$Taiwan Semiconductor (TSM.US)$ [Share Link: TSMC plans chip price hikes up to 10% in 2027] - Moomoo

Moomoo · 2026.07.22

📰 View original

3

TSMC to raise prices for advanced and mature processes by up to 10% next year - Chosunbiz

Chosunbiz · 2026.07.22

📰 View original

5

TSMC Can't Make Chips Fast Enough, and Rivals Are Pouncing - The Globe and Mail

The Globe and Mail · 2026.07.22

📰 View original

6

Taiwan Semiconductor Just Doubled Down on the AI Megatrend. Why TSMC Still Has Room to Run. - Barchart.com

Barchart.com · 2026.07.22

📰 View original

7

TSMC Q2: Compounding AI Spending Concerns Hit Stock Valuation (NYSE:TSM) - Seeking Alpha

Seeking Alpha · 2026.07.22

📰 View original

📺 Reference Videos (1)

8

YouTube

[Quick Briefing] Is Apple changing iPhone chip designs? An AI breakthrough

▶MTN 머니투데이방송·2026.07.21