Rumor has it that AMD (AMD.US)'s full range of chips will increase in price by 10%! TSMC's higher foundry costs are the main reason

The Zhitong Finance App learned that the stock price of AMD (AMD.US) rose nearly 2% before the market on Friday, continuing the upward trend of the previous three consecutive trading days. Earlier, there were unconfirmed reports that the chipmaker had notified customers that it would increase the price of a full range of chip products by 10% starting in the fourth quarter.

According to reports, this price increase is related to the rise in manufacturing costs for TSM.US. The vast majority of AMD chips are manufactured by TSMC. Meanwhile, as manufacturing costs continue to rise, TSMC has notified customers to increase chip OEM prices by about 10%. As rising wafer costs directly squeeze product margins, AMD chose to transfer cost pressure downstream.

The report also said that AMD's price increase will involve multiple product categories, including AI acceleration chips, consumer-grade graphics processors (GPUs), and motherboard chipsets. Although the report did not explicitly mention AMD's Ryzen CPU, the CPU is also highly dependent on TSMC's OEM, so this round of price increases may also be transmitted to consumer-grade processors.

It is worth mentioning that reports earlier this month indicated that Intel (INTC.US) plans to raise PC CPU prices again by about 10% on October 5, 2026. This is Intel's third round of price increases since the end of 2025 — an increase of about 10% in the first quarter of 2026, and raised the prices of some consumer and server grade CPUs again in July, ranging from tens of dollars to over 1,000 US dollars.

Supply chain sources pointed out that the direct reason for Intel's continued price increase in this round is the rise in overall supply chain costs and continued strong demand for some products — prices of key components such as memory and PCB boards have soared, which has significantly squeezed the profit margins of the entire PC supply chain. Although the industry generally expects the global PC market to decline slightly in 2027, Intel's price increase at this time shows that its strategic focus has shifted from “price for volume” to “price for profit,” and the profitability of its PC CPU business may be recovering.