TSMC May Hike Prices by Nearly 10% in 2027 Amid Rising Demand for AI Computing Power

TSMC may raise prices for advanced processes and packaging by nearly 10% in 2027, according to Goldman Sachs. The move is aimed at offsetting pressure on gross margins caused by capacity expansion and enhancing profitability.

The investment bank also expects TSMC's capital expenditure to increase to $75-80 billion in 2027, driven by the growing demand for AI computing power.

AI ASICs are expected to surpass GPUs as the largest growth engine in the next two years, with Google's TPU shipments projected to increase by at least 2-3 times compared to this year by 2027.

TSMC is also investing heavily in advanced packaging and semiconductor equipment to meet growing demand for AI infrastructure. The company's stock price has recently pulled back despite better-than-expected outlooks, reflecting a shift towards profit-taking and reducing holdings.