At the Nikkei Asia Forum APAC 2026, Thammasak Sethaudom, president and CEO of SCG, emphasized that the ongoing energy crisis should not be seen as a temporary shock but as a structural shift requiring long-term strategic responses from Asian companies. He highlighted that, due to escalating tensions between Iran and the United States, the Strait of Hormuz—a critical route for energy exports to Asia—is unlikely to return to pre-crisis conditions soon. Thammasak urged companies to diversify energy sources and invest for the long term, as a quick restoration of global stability is unrealistic [1].
Rising global energy prices are fueling inflationary pressures, which are now impacting the technology sector. According to an exclusive report by Nikkei Asia's tech team, TSMC, the world's largest contract chipmaker, plans to increase its chip production service prices by up to 10% starting in 2027. This decision is driven by higher costs for raw materials and manufacturing equipment. TSMC's major clients include Nvidia, Apple, Google, and Amazon, all of whom rely on its advanced semiconductor manufacturing for AI and other technology services [1].
The anticipated increase in semiconductor prices is expected to have significant ripple effects across the technology industry, particularly as these components are essential for the development and operation of AI services. The article suggests that these higher prices are unlikely to be temporary, reinforcing the need for companies to adapt to a new, less stable global environment [1].
The Nikkei Asia newsroom is closely monitoring how prolonged instability in the Middle East could further affect Asian economies and businesses, indicating ongoing uncertainty and the need for continued vigilance and adaptation [1].
CONCLUSION
TSMC's planned price hikes for chip production, driven by persistent energy shocks and rising input costs, signal a structural shift in the global supply chain. Asian companies are being urged to adopt long-term strategies and diversify energy sources as market volatility persists. The technology sector, especially AI-related industries, is likely to face significant cost pressures moving forward.