Taiwan Semiconductor Manufacturing Co. (TSMC) will raise prices for its chip-making services by 5% to 10% in 2027.

The price adjustments apply to both advanced and legacy semiconductor manufacturing processes.

TSMC attributes the hike to rising costs for materials, equipment, and overseas plant construction.

Negotiations with customers began in June and are now finalized.

The price increase affects major clients including Apple, Nvidia, and AMD.

TSMC shares rose 3.5% in pre-market trading following the announcement.

The company describes its pricing strategy as strategic rather than opportunistic.