TSMC is signaling stronger pricing power as demand for AI computing pushes the world’s largest contract chipmaker deeper into the center of the global hardware boom.

CEO C.C. Wei told shareholders at the company’s annual meeting that AI demand shows no sign of easing and that TSMC is working to avoid becoming a bottleneck in the semiconductor supply chain. 

The company expects revenue to grow by more than 30% this year in US dollar terms, supported by demand for advanced chips used in AI infrastructure.

Wei also said TSMC would like to raise prices to offset rising costs, though he pushed back against the kind of abrupt pricing moves seen in memory chips. The message was measured but clear: customers need more advanced capacity, suppliers are under pressure, and TSMC has room to charge more.

The pricing shift could begin at the most advanced end of the market. TSMC is reportedly considering price increases of up to 15% for 3nm chips in the second half of 2026, followed by another 5% to 10% increase in 2027. The increases are tied to tight capacity, rising input costs, and demand from AI chipmakers and custom ASIC customers.

That gives TSMC a rare kind of leverage. Apple, Nvidia, AMD, Qualcomm, and other major chip designers rely on its foundries to manufacture advanced processors. When AI companies need more compute, the demand ultimately runs through TSMC’s fabs.

The company’s strategy is not to shock customers with sudden increases. Wei framed the approach as gradual pricing discipline, allowing TSMC to protect margins without forcing its largest clients to accelerate efforts to diversify production away from the company.

The AI boom is also changing the demand mix. Beyond graphics processors, customers are increasingly seeking custom ASICs designed for specific workloads. That matters because it expands demand across more chip categories and gives TSMC more pricing support across advanced nodes.