Taiwan Semiconductor Manufacturing Company (TSMC) has announced a 10 percent increase in wafer prices for 2025, which will significantly impact numerous tech companies, particularly Apple.

As TSMC's largest customer, Apple is expected to face increased costs for its future iPhone models due to this price hike.

The price increase will also affect Apple's M series chips, which are used in MacBook laptops and iPads, leading to higher prices for these products as well.

This price surge comes at a challenging time for Apple, as the company is already grappling with U.S. tariffs on imported goods, having rushed inventory into the U.S. before these tariffs took effect.

Although Apple acknowledges the influence of tariffs on the price hike, it is reportedly hesitant to publicly attribute the increases directly to these tariffs.

Compounding these challenges, the iPhone 17 lineup is already facing criticism for its redesign, and any additional price increases could further complicate its market reception.

In response to these pressures, Apple plans to shift iPhone production from China to India, although this strategy has encountered pushback from President Trump.

In contrast, Samsung, Apple's largest competitor, has less exposure to tariff issues as it moved production out of China years ago.

Samsung's Galaxy S25 lineup, which relies on Qualcomm's Snapdragon 8 Elite due to manufacturing issues with its Exynos chips, may also be impacted by TSMC's price increase.

The decision to raise wafer prices had been under consideration by TSMC for several months, and the 10 percent increase is expected to lead to higher prices for the upcoming iPhone 17.