Demand for TSMC’s 2nm wafers has forced a supply choke, as the Taiwanese semiconductor manufacturing giant’s capacity is booked until the end of 2026. As the company benefits from the raging AI boom, customers of TSMC’s advanced processes have been notified that they will have to bear price increases for four consecutive years, starting from 2026. While the first quarter of next year is generally slow, analysts are optimistic that these price hikes will help TSMC maintain adequate momentum, but clients should prepare their finances because the first round of increases is expected to take effect from New Year’s Day.
Wafer price increase for TSMC’s 2nm technology will be a single-digit figure; the short supply of the 3nm node could witness a 3 percent hike
Despite sub-3nm wafers experiencing price bumps for four consecutive years, TSMC’s customers do not appear to take a backseat, even though they have the option to place orders with Samsung and its 2nm GAA process. According to the Economic Daily News, TSMC will introduce a single-digit price increase in 2026, though the actual figure will depend on the customer’s order level and contractual agreements.
However, research firms believe that TSMC’s advanced technology prices will rise by 3-10 percent. In fact, the manufacturer’s 3nm node, which was previously reported to reach its maximum capacity by 2026, is also expected to witness supply shortages, forcing the node’s price to increase by 3 percent in 2026. With its superior experience paired with reliability, TSMC is suffering from success, with AI demand resulting in labor shortages and an astronomical rise in capital expenditure.
Apple, which was earlier said to be TSMC’s biggest customer in 2024 as it accounted for 24 percent of total revenue, has reportedly secured more than half of the initial 2nm capacity for chipsets like the A20 and A20 Pro, leaving competitors like Qualcomm and MediaTek to either settle for crumbs or shift to the more advanced 2nm ‘N2P’ process. TSMC has attempted to counter this ravenous demand by constructing three facilities focused on 2nm production, but it will take a while before manufacturing can ramp up at these locations.
News Source: Economic Daily News
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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