TSMC to Raise Prices on Advanced Semiconductor Nodes Starting 2026

TSMC, the world’s leading contract semiconductor manufacturer, is set to implement notable price increases on its most advanced chip nodes beginning in 2026, according to a recent report from TrendForce. The price adjustments will primarily affect nodes below 5 nanometers, with anticipated increases ranging from 5% to 10%. Currently, TSMC’s 3 nm wafers are priced at around $20,000 each, but the company expects the cost of 2 nm wafers to surpass $30,000 when mass production launches in late 2025.

These pricing changes will impact major technology companies such as Apple and NVIDIA, both of which rely heavily on TSMC’s cutting-edge manufacturing capabilities. The decision to raise prices is closely linked to TSMC’s substantial investments in its Arizona facilities, where the company has committed over $65 billion. The Arizona plant began 4 nm production in early 2025, marking a significant milestone in TSMC’s global expansion.

According to AMD CEO Lisa Su, operating costs for overseas facilities like those in Arizona are 5% to 20% higher than for TSMC’s manufacturing sites in Taiwan. These increased expenses stem from a variety of operational factors, including labor, logistics, and regulatory requirements. TSMC’s price strategy aims to preserve its gross margins above 53%, even as the Arizona operations are projected to reduce company-wide margins by 2% to 3% initially, with a potential long-term impact of up to 4%.

SanDisk Announces 10% Price Increase Amid Rising Demand

In related industry news, SanDisk has announced a 10% price increase for all channel partners and consumer products, effective for new orders placed after September 5th. The company attributes this adjustment to surging demand driven by artificial intelligence applications, data centers, and mobile devices. SanDisk also indicated that it will conduct regular price reviews and may implement further changes in response to evolving market conditions.

While TSMC is raising prices on its most advanced nodes, the company may consider reducing prices for mature manufacturing processes where cost pressures are less significant. This approach allows TSMC to balance profitability with competitive pricing across its diverse product portfolio.