TSMC raising advanced chip prices 5–10%, boosting profit margins

Key takeaway

• TSMC, the world's dominant semiconductor manufacturer, is raising prices on advanced chips by 5–10%, a move that will likely expand its already-massive profit margins above analyst expectations.

• Since advanced nodes generate 74% of TSMC's revenue and the company already posted a 65% year-over-year earnings-per-share jump in Q1, stronger pricing could drive even bigger earnings surprises in 2026.

3 Key Points

FAQ

What does TSMC control in the semiconductor market?

TSMC controls nearly three-fourths of the global foundry market, according to Counterpoint Research; its nearest competitor has a market share of just 7%.

How much of TSMC's revenue comes from advanced chips?

TSMC gets 74% of its total revenue from chips made using advanced process nodes, which are classified as 7-nanometer or smaller.

What was TSMC's Q1 profit margin, and how much did it improve?

TSMC's net profit margin reached 50.5% in Q1, up 7.4 percentage points year over year.