Chips Turn to Gold: TSMC Raises Prices for Four Years
TSMC has announced a four-year price increase for chips due to high demand for artificial intelligence solutions. Production capacity for the 2nm process is sold out until the end of 2026, and customers have received notifications of annual price increases starting January 1, 2026.
For advanced processes, including 2nm, price increases are expected to be 3-10%, and the current performance leader - 3nm - will become more expensive by approximately 3-5% due to supply shortages. In a near-monopoly position, TSMC can dictate terms and raise prices without restrictions.
Despite Samsung's 2nm GAA technology, major customers - Apple, NVIDIA, and AMD - prefer to pay TSMC's "reliability tax" to avoid taking risks with competitors. Apple has already booked more than half of the 2nm capacity for future A20 and A20 Pro chips. Other manufacturers, including Qualcomm and MediaTek, can only count on leftovers or wait for new process technologies.
The price increases are not only due to high demand but also to a shortage of qualified personnel and huge investments in new factories. TSMC is building three new factories for 2nm production, but until they start operating, cheap advanced chips are not to be expected.
