Your next iPhone could cost more, and it won’t be because of rising RAM costs or a fancier camera. TSMC reportedly plans to increase its processor prices by up to 10% starting in 2027, and Apple would have no option but to pay.
This could drive up the amount consumers shell out for a range of Apple devices, not just iPhones. Pricier chips for MacBooks, iPads and more would drive up production costs.
Why an iPhone price increase in 2027 is now on the table
TSMC makes processors for almost all major tech companies. Apple buys chips from TSMC, but so do Amazon, Google, Nvidia, Qualcomm and AMD — almost every major player relies on the company’s chip foundries. So when TSMC raises prices, those costs tend to trickle down. As component costs go up, so do device prices.
Apple already raised prices across its Mac and iPad lineup last month, with CEO Tim Cook terming the increases “unavoidable.” However, Apple spared the iPhone, Apple Watch and AirPods from that round of price hikes, which was related to the rising cost of memory chips. Now Apple apparently faces another source of price pressure.
While nothing is confirmed yet, a TSMC price hike reported by Nikkei on Tuesday would land right as Apple gears up for its 20th-anniversary iPhone lineup.
The world’s biggest contract chipmaker apparently locked in base price hikes of 5% to 10% across nearly all its production. This might cover the advanced chips inside iPhones and Macs, as well as the older chips used in everyday electronics.
What’s driving the latest price hike
TSMC did not confirm specific figures, but the new report says the increase reflects rising costs for raw materials, manufacturing equipment and outfitting new overseas factories.
The Taiwanese chipmaker is currently building out fabs in Arizona, with plans to invest up to $64 billion in 2026 alone. Geopolitical tension is also reportedly adding extra strain. Earlier this year, the U.S.-Iran conflict pushed up the cost of petroleum, which is critical to chip production.
TSMC and its customers started negotiations in June, and the new pricing would take effect at the start of 2027 if the report proves true.
How much more Apple would need to pay for chips
The reported base hike ranges from 5% to 10%, depending on the client and the chip. But it looks like there’s a catch for companies that order more chips than they originally forecast.
Such customers reportedly will face an extra 10% to 15% premium on top of the base price increase. In theory, this means some advanced chip orders might end up costing 25% more than today. But that’s the worst-case scenario, not a confirmed figure.
Apple’s chip costs were already climbing
TSMC isn’t the only headache here, according to industry estimates. Apple is also dealing with a global memory chip shortage driving up NAND and DRAM prices, as previously noted.
Early estimates suggest the iPhone 18 Pro Max might cost up to $300 more to build than the iPhone 17 Pro Max. Most of that jump comes from memory, not the processor. Top this with TSMC’s price hike, and the pressure on Apple’s margins keeps building.
What has TSMC confirmed
TSMC hasn’t officially shared any numbers, but reportedly said that pricing is “strategic, not opportunistic.” TSMC chairman C.C. Wei already addressed the situation during last month’s earnings call, saying he was “jealous” of memory chipmakers posting gross margins as high as 86%.
Wei added that TSMC does not want to raise prices “four or five times” the way competitors have done. He said the goal is steady, sustainable margins that support long-term growth.
When you’d actually feel this
Nothing changes right away, and this isn’t official, at least for now. The reported new TSMC pricing won’t kick in till next year.
But if the report proves accurate and Apple decides to pass on these costs, expect it to show up in the 2027 iPhone lineup first, not the new models coming this fall. 2027 is the year a higher TSMC chip bill and Apple’s own pricing decisions could finally collide.
Anurag Chawake is a tech-focused writer specializing in smartphones, apps and consumer technology. His interest in computers began during the Windows 98 era, eventually leading him to explore everything from operating systems to mobile devices and PC hardware. Anurag previously contributed to The Indian Express, covering Apple, Android, gaming and the broader technology landscape.
