TSMC has notified clients that its advanced chip portfolio will get more expensive. The increase is not limited to the newer 3nm process. Even 7nm and some legacy nodes will rise too. As a result, the hike will touch most of TSMC’s wafer business. Major chip designers like Apple, Nvidia, AMD, Qualcomm, Broadcom, and MediaTek will all face higher costs.
Increases Land in the 5-10% Range
Reports of a foundry price increase had circulated before. Right now, most of TSMC’s production lines run at full capacity. Advanced processes bring in the highest revenue, and Nvidia and Apple have already booked that capacity. So the foundry business is currently a seller’s market.
TSMC faces rising production costs of its own, of course. The company therefore stresses that its pricing is strategic, not opportunistic. In other words, it says it is not simply seizing on high demand to chase more revenue.
The exact size of the increase remains unclear. Sources say the rate varies by client, node, and product category. Overall, though, it falls in the 5% to 10% range. TSMC has already applied the new prices in some cases. Other clients have been told that future purchase orders will settle at the updated rates.
The Hike Spans Many Process Nodes
Culpium first reported the details. According to that report, TSMC told clients that all advanced nodes will rise. This means the increase is not limited to 2nm and 3nm. The older but still advanced 5nm and 7nm processes will rise as well. You can read the original Culpium report for the full breakdown.
In the first quarter of 2026, 3nm made up 25% of TSMC’s wafer revenue. All advanced nodes, defined as 7nm and below, accounted for 74%. So this hike covers roughly three-quarters of TSMC’s wafer business.
Why 7nm Still Matters
The 7nm process is no longer TSMC’s flagship technology. Even so, it remains widely used today. It powers processors, AI accelerators, networking chips, and other high-performance parts. Many products still rely on it. After all, 7nm beats the newest nodes on cost, yield, and maturity. In many cases, a job simply does not need cutting-edge 2nm or 3nm.
Strong Bargaining Power
TSMC stresses that it is not raising prices opportunistically. Still, the supply-demand imbalance gives it real leverage. Many clients are racing for 2nm and 3nm capacity. So TSMC has the confidence to raise prices and pass its costs to clients. Those costs eventually reach consumers, and the move naturally lifts TSMC’s margins too. Culpium estimates the hike could add about two percentage points to full-year gross margin.
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