TSMC agreed on pricing for 2027 a year earlier. For advanced processes, prices are up 3% to 6%, with 2nm/3nm leading the way.
Many people interpret it as “AI chips aren’t available in sufficient supply,” but a more accurate way to put it is:
The bottleneck isn’t in the chips themselves, but in the rest of the production chain failing to keep up—packaging, power, substrates, cooling, and any single link that gets stuck. When that happens, a wafer fab’s production capacity turns into scarce allocated supply, and that allocation naturally drives prices higher.
For downstream manufacturers, this isn’t cyclical prosperity; it’s a long-term shift upward in the cost structure.
In the end, someone has to pay for the AI bill.
Many people interpret it as “AI chips aren’t available in sufficient supply,” but a more accurate way to put it is:
The bottleneck isn’t in the chips themselves, but in the rest of the production chain failing to keep up—packaging, power, substrates, cooling, and any single link that gets stuck. When that happens, a wafer fab’s production capacity turns into scarce allocated supply, and that allocation naturally drives prices higher.
For downstream manufacturers, this isn’t cyclical prosperity; it’s a long-term shift upward in the cost structure.
In the end, someone has to pay for the AI bill.