TSMC plans to raise chip contract manufacturing prices from next year, raising the possibility that Apple could face greater pressure on product prices.

On July 21, IT outlet NineToFiveMac reported that TSMC has already completed price talks with customers and that the increase is known to be in the range of 5 to 10 percent.

This development comes after Apple recently raised prices sharply for major products, citing higher memory costs. Apple raised prices by more than 50 percent for some products last month, and memory and storage upgrade costs doubled in some tiers. Apple said at the time it was "working tirelessly" to resolve the issue, but observers continued to say it looked unlikely that the price increases would be reversed in the short term.

Attention is shifting to Apple’s new iPhone model expected to be launched in September. After raising prices for existing products, Apple is also expected to raise prices for the new iPhone when it goes on sale. If that coincides with higher unit costs from TSMC, a key chip supplier, Apple’s cost burden could rise further.

TSMC’s proposal goes beyond the base manufacturing price. It also includes a clause allowing an additional premium of up to 15 percent if a customer increases orders beyond the demand forecast it initially presented. That would mean a bigger cost burden if Apple sets conservative demand for a new product and later has to expand orders.

TSMC did not specifically confirm the plan itself to raise prices. It said it continues to work closely with customers while striving to sell the value of its services. That suggests it is maintaining its existing stance in supply chain talks of emphasising service value and production capacity rather than price adjustments.

The gap between Apple’s explanation and consumer reaction is also widening. Apple said the price increases were unavoidable, but many readers saw them as effectively becoming permanent. There was also a view that consumers are likely to respond by keeping products for longer before upgrading.

In this situation, an additional increase by TSMC could directly weigh on Apple’s pricing strategy. Apple has said it can no longer absorb rising memory costs on its own, and if chip manufacturing costs also rise, it will again have to choose between product prices and margins.

Separately, TSMC recently said it could build a total of 12 semiconductor plants in Arizona. But the planned price increase that will apply to customers in the near term is being highlighted as a more direct variable than the plan to expand production bases. How much Apple reflects this burden in future product prices will be the next point to watch.