Taiwan Semiconductor Manufacturing Company (TSMC) is planning significant price increases on its most advanced chip manufacturing processes, including the 3nm node, with hikes beginning in January 2026.
The price increases will range between 3% and 10% depending on the process node and customer volume. Current wafer prices for 3nm chips sit at approximately $18,000 to $20,000 per wafer, while the forthcoming 2nm wafers are expected to surpass $30,000 each.
TSMC has mapped out multi-year price hikes spanning its most advanced nodes, covering 5nm/4nm, 3nm, and sub-2nm processes from 2026 through at least 2029. The increases are driven by enormous spending on new fabrication plants and a supply-demand imbalance fueled by AI demand, giving TSMC significant pricing power.
The companies affected include Nvidia, Apple, AMD, and Qualcomm, all heavily reliant on TSMC’s most advanced manufacturing processes. None of these companies have a viable alternative manufacturer for their most advanced products. Samsung Foundry remains a distant second in cutting-edge fabrication, and Intel’s foundry ambitions are still a work in progress.
For investors, the multi-year nature of these planned increases suggests a structural shift in the economics of advanced chip manufacturing. As TSMC raises prices, competing foundry operations like Intel Foundry and Samsung may become relatively more attractive if their pricing undercuts TSMC significantly.