Commentary: TSMC's pricing power stays intact as AI demand keeps fabs full - digitimes

Taiwan Semiconductor Manufacturing Company (TSMC) maintains strong pricing power amid sustained AI demand, as reported by Digitimes. Despite rumors of some Google TPU production shifting to Intel and ... Read original →

The AI compute arms race has pushed advanced nodes into structural shortage, allowing TSMC to lock in a self-reinforcing cycle of technology leadership, capacity control, and pricing power. Even as Google and AMD divert select TPU and GPU orders to Intel and Samsung, rivals still lag in EUV layer count, interconnect density, and HBM integration—making TSMC the only viable option for leading-edge AI training chips. This technological gap forces hyperscalers to absorb H2 2026 price hikes, effectively passing geopolitical risk premiums downstream. For Samsung and Intel, government subsidies may sustain fab operations short-term, but won’t close the yield or ecosystem gap. Over the next 18 months, as U.S. CHIPS Act funding materializes while Japan and Europe lag in ramping advanced capacity, TSMC’s concentration in Taiwan, China will further constrict global AI supply chain flexibility.