More bad news for Apple pricing as TSMC increases chip costs

Apple has already increased the prices of most of its products very significantly after it said it could no longer absorb far high memory costs. iPhone price rises are also expected when this year’s models launch in September.

The majority already took the pessimistic view that these rises will be permanent, despite the company’s claims that it was working hard to address them, and it’s now looking like things could get even worse as TSMC increases chipmaking prices …

Apple price increases

Apple last month announced increases that in some cases exceeded 50% – with memory and storage upgrades literally doubling in some cases. The company said at the time that it was “working tirelessly” to address the problem.

We know this is not welcome news, and we are working tirelessly to find solutions.

The majority of 9to5Mac readers didn’t believe this and expect the higher pricing to remain in effect permanently. Almost all of you expect this to change your purchasing behavior, mostly by upgrading less frequently.

TSMC raising chipmaking prices

Things now look set to get even worse. Nikkei Asia reports that Apple chipmaker TSMC is planning to increase prices for its chip fabrication services from next year.

TSMC is set to raise prices for both advanced and mature chip production services by up to 10% in 2027 to reflect rising costs for materials, manufacturing equipment and construction of new overseas chip plants, multiple sources told Nikkei Asia.

The report says the Taiwanese company has already completed negotiations with its clients, with increases ranging from 5% to 10%. The chipmaker may also add a premium of anything up to 15% when customers increase their orders beyond their initial forecasts. This could impact Apple if the company turns out to have underestimated demand for a new product.

TSMC declined to comment, saying that it continues to work closely with its customers in order to sell the value of its services.

The company recently said it may build 12 Arizona chip plants in total, but there are reasons for skepticism.