Digitimes reports that AI demand is handing pricing power to foundries, with TSMC leading the charge.

Digitimes reports that AI demand is handing pricing power to foundries, with TSMC leading the charge. The article suggests TSMC's ability to command higher prices for advanced nodes is strengthening as AI chip demand surges. This pricing power could translate into sustained ASP growth and margin expansion for TSMC in the coming quarters. While the report is a single source and lacks specific quantitative data, it aligns with industry trends of tight advanced-node capacity and strong AI-related orders from hyperscalers and AI chip designers. Spillover effects include potential cost pressure for TSMC's customers (NVDA, AMD, AVGO, etc.) as foundry pricing rises. However, TSMC's leading position positions it as the primary beneficiary of the AI boom. Source