TSMC has signaled a multi-year upward trend in chip pricing, fueled by the relentless demand for AI-driven solutions. Manufacturing capacity for the upcoming 2nm process is already fully committed through the end of 2026, with clients officially notified of scheduled annual price adjustments beginning January 1, 2026.
For cutting-edge nodes, including the 2nm process, costs are projected to climb by 3% to 10%. Even the current performance benchmark, the 3nm node, will see price hikes of 3% to 5% due to persistent supply shortages. Given its near-monopoly in the high-end foundry market, TSMC is effectively positioned to dictate market terms and implement price increases at its discretion.
Despite competition from Samsung’s 2nm GAA technology, industry giants like Apple, NVIDIA, and AMD are choosing to pay a “reliability premium” to TSMC rather than risk transitioning to a competitor. Apple has already secured more than half of the initial 2nm capacity for its next-generation A20 and A20 Pro chips. Other major players, such as Qualcomm and MediaTek, may have to settle for remaining allocations or wait for future production cycles.
These rising costs are attributed not only to skyrocketing demand but also to a global shortage of specialized talent and the massive capital investment required for new infrastructure. While TSMC is currently building three new fabrication plants dedicated to 2nm production, affordable high-end silicon is unlikely to return until these facilities reach full operational scale.
Source: iXBT.games