Chipmakers' Stocks Soar: TSMC Discusses 10% Price Hike for Products — Nikkei

After dipping into “bear” territory last week on July 21, chipmakers’ stocks rebounded from their recent lows and are up more than 5% on Tuesday. The sector was buoyed, among other things, by reports from the Japanese publication Nikkei that TSMC—the world’s largest contract chip manufacturer— plans to raise prices for some of its products and services by up to 10% in 2027, as noted by Bloomberg.

TSMC, which manufactures chips for global technology leaders such as Nvidia, Apple, and Broadcom, began negotiations with customers in June and finalized a 5–10% increase in base prices for the production of certain microchips in July, according to sources familiar with the situation cited by Nikkei. According to these sources, the changes will take effect next year and will affect both cutting-edge chips and previous-generation semiconductors. The publication attributes this move to rising electricity costs, as well as higher prices for many components needed in chip manufacturing. Earlier in July, TSMC stated that it would not raise prices “suddenly.” Last week, the company reported its fifth consecutive quarter of record net income and noted the ongoing “global megatrend in AI, which continues to drive the demand for ever-increasing computing power and sustains [market] interest in advanced semiconductors.”

Against this backdrop, the Philadelphia Semiconductor Index—which had fallen more than 20% last week from its all-time high in June—jumped 5.5% on Tuesday, July 21. Shares of chipmaker Micron rose 12.6%, while Advanced Micro Devices (AMD) and Intel each gained more than 8%, and shares of memory chip maker SanDisk rose 13%. TSMC’s own shares in New York gained more than 5% on Tuesday.

Another positive factor affecting semiconductor stocks is the earnings season that has begun in the U.S., according to Bloomberg. Companies that account for nearly 20% of the S&P 500’s market capitalization will report their second-quarter 2026 results this week. In particular, Alphabet and Intel (which will report their results on Wednesday and Thursday, respectively) will give investors a clearer picture of how multibillion-dollar spending on AI is affecting the market. Tesla is also scheduled to release its quarterly report on July 22.

“Following a significant rise in the stock prices of AI-related companies, investors are becoming more selective about them,” noted Rob Howarth, senior director of investment strategy at US Bank Asset Management. “Earnings growth remains the key driver of long-term prospects,” he added (as quoted by Bloomberg).

Despite last week’s recent crash and pullback into “bear” territory, the Philadelphia Semiconductor Index has gained more than 70% since the start of the year. Shares of leading chipmakers have significantly increased their market capitalization over the same period. For example, Micron has soared more than 240% since the beginning of January, AMD more than 150%, and Intel nearly 185%.

This article was AI-translated and verified by a human editor