The high demand for AI has led to a price rise in mature manufacturing processes, with TSMC starting a new round of price hikes.

According to reports, TSMC's advanced process orders are full, and while continuously adjusting the prices of advanced processes such as 3 nanometers, the wave of price hikes has spread to mature processes. Multiple IC design companies have revealed that they have received notifications from TSMC, planning to increase the prices of mature processes foundry services. The extent of the price increases varies among different customers, with the adjustment expected to take effect officially in January next year. This is the first time that TSMC has raised prices for mature processes since the end of the COVID-19 pandemic over three years ago. In addition to previous price hikes at various advanced technology nodes, TSMC is now experiencing a comprehensive price increase, further boosting business revenues. TSMC will hold an earnings conference this Thursday and is currently in a quiet period for financial reports, so they did not respond to rumors of price increases for mature processes yesterday. With regard to pricing issues, TSMC has publicly stated multiple times that their pricing strategy is based on long-term strategic goals rather than short-term profit maximization, and they will continue to work closely with customers to create value for the industry. Earlier this year, the market heard that TSMC's advanced process capacity was in short supply, leading to four consecutive years of price increases; now this price hike trend has spread to mature processes. Several IC design companies have privately indicated that major manufacturers need to prepare next year's procurement budgets before the end of the year, and TSMC has recently been in communication with customers to confirm the price increases for mature processes foundry services next year. The extent of the price increases will be finalized in the fourth quarter based on the cooperation partners and product lines, with the current market estimation predicting an increase in the single digits percentage-wise.