TSMC Poised for AI Chip Dominance in 2027

The semiconductor industry is expected to generate $1.6 trillion in revenue this year, up 92% from last year, according to market research firm Gartner.

This growth is largely driven by artificial intelligence (AI) data centers, which will account for 53% of the global semiconductor industry revenue in 2030, up from 36.5% in 2026.

Taiwan Semiconductor Manufacturing (TSMC), a pure-play foundry, operates as a major player in this market, manufacturing chips designed by its customers, including Nvidia and Advanced Micro Devices (AMD).

TSMC's key customers are raising prices to accommodate the foundry giant's rising chipmaking fees, with AMD reportedly implementing a 10% price hike on its chips in the fourth quarter of 2026.

This bodes well for TSMC, which plays a major role in the higher prices Nvidia and AMD will charge customers due to its 73% market share in the pure-play foundry market.

TSMC is expected to increase its chipmaking fees by 10% from 2027, according to Nikkei Asia, and charges 10%-15% higher prices for orders above the initial commitment.