TSMC's cutting-edge chip processes are expected to become more expensive moving forward, as the firm is factoring in a price hike for mainstream nodes.
TSMC's 3nm & Beyond Chips Could Cost a Lot More to Customers, But the Firm Would Still See Massive Demand in the Future
The demand for semiconductors worldwide is at its peak right now, driven by the AI frenzy and, of course, the consumer upgrade cycle within the mobile industry. In the midst of all this, TSMC is getting the spotlight when it comes to fulfilling chip demand, as the Taiwan giant has reported 100% utilization of all its advanced chip processes, including 3nm and 5nm. According to a report by the Taiwan Economic Daily, TSMC has already begun negotiating chip supply contracts with its clients, and estimates suggest that chip prices could rise by up to 10% next year.
TSMC has typically been discreet when commenting on price hike rumors, mainly because the firm respects its long-term partnerships with clients, which means that price hikes for individual nodes haven't been overly aggressive over the years. However, moving into 2026, TSMC faces a massive production bottleneck for its advanced chip processes, mainly because HPC customers are accounting for a larger portion of the company's orders, which traditionally has been dominated by the mobile segment.
More importantly, TSMC is investing heavily in overseas facilities, such as those in the US and Japan, which has resulted in a dramatic rise in expenditure over the years. Fortunately, for the Taiwan giant, the competition in the semiconductor segment isn't aggressive, which means that under price negotiations, TSMC has leverage over its customers. However, the firm is known for its respectable relationships, which is why even a 10% price rise is seen as a modest one.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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