Rumor mill: TSMC looks to be raising the price of its advanced nodes, and the company is blaming tariffs imposed by the Trump administration as one of the factors for its decision. The report comes just as the semiconductor giant's revenue jumped 18.5% to $30.24 billion and its market share hit a record 70.2%.
TSMC plans to increase the price of its advanced nodes by 5-10% in 2026, according to a report by DigiTimes. The hike covers its 5nm/4nm, 3nm, and 2nm processes, and foundry customers have already been informed that they will be paying extra.
The exact increases will vary based on the customer, the application, and the order volume. The lowest 5% hike is expected to be applied to smartphone and mobile chips. Orders for CPUs will go up around 7%, and high-performance computing and AI chips will rise up to 10%.
TSMC already charges huge amounts for its services. The N2 process wafers are reportedly around $30,000 each, a price that reflects the high-cost nature of gate-all-around (GAA) architectures and cutting-edge manufacturing complexity. N3 wafers cost anywhere from $20,000 to $25,000, while 5nm wafers are around $16,000. Rumors suggest that TSMC's next-generation Angstrom-era nodes, such as A16 (approximately 1.6 nm), could cost as much as $45,000 per wafer.
While advanced wafers look set to become even more expensive, TSMC could discount its older nodes.
Also read: Apple secures half of TSMC's 2nm chip production for iPhone 18
TSMC is reportedly introducing the price hikes to offset the US tariffs. Trump did announce a 100% tariff on semiconductors in August, but those companies who have committed to making chips in the US, including TSMC, will be exempt.
In June, CEO C.C. Wei said that US tariffs do have some impact on the firm, "but not directly. That's because tariffs are imposed on importers, not exporters – and TSMC is an exporter." However, he acknowledged that tariffs could drive up prices and indirectly affect demand.
The world's largest chipmaker is also pointing the finger at supply chain disruptions, the appreciating New Taiwan dollar, and rising costs stemming from its US operations for its need to raise prices. In July, AMD boss Lisa Su said TSMC chips made in the US cost up to 20% more, adding that the extra expense was worth it.
TSMC has just announced its foundry market share has risen to a record 70.2%, helping push revenue to a massive $30.24 billion during the second quarter, an 18.5% QoQ increase.