[News] TSMC Reportedly Raising N3P Prices 20% Ahead of 2nm Era, Pressuring Qualcomm and MediaTek

Apple has recently unveiled its iPhone 17 series, featuring the A19 chip built on TSMC’s N3P process. The next-generation A20 will move into the 2nm era. According to Wccftech, citing China Times, sources say that since mobile chips are expected to enter 2nm next year, prices for 3nm “N3P” wafers have risen 20% compared with the earlier 3nm “N3E” process. The report also notes that the shift to 2nm in 2026 will bring a price increase of more than 50%.

The report indicates that Android smartphone IC design giants MediaTek and Qualcomm will each unveil their latest flagship chips this week, the Dimensity 9500 and Snapdragon 8 Elite Gen 5. Industry sources cited by the report indicate that, like Apple’s A19, both are built on TSMC’s N3P process. Prices for these chips have reportedly risen by 16% to 24%, as the report highlights.

As for TSMC’s 2nm process, the report notes, citing industry sources, that with high capital costs and yield targets already met, there are no discounts or price negotiations, and prices are at least 50% higher than 3nm. China Times adds that initial output will focus on AI and high-performance computing chips, while supply chain sources indicate flagship smartphone chips could reach $280 apiece when 2nm mass production begins late next year.

TSMC’s Potential Rising Costs Set to Push Up Smartphone Prices

If TSMC carries out the rumored sharp price hikes, smartphone prices could see a wave of increases. According to Chinese media outlet Cailian Press, Vivo, Xiaomi, and OPPO all use Qualcomm and MediaTek chips, while Samsung’s Galaxy S26 series—set to feature both the Exynos 2600 and Qualcomm’s Snapdragon—is also likely to be affected. The iPhone, which has avoided major price changes this year, is projected to rise significantly when it adopts 2nm chips.

TSMC’s 2nm Roadmap: Mass Production in 2025, Early Customers Revealed

TSMC announced on its July earnings call that its 2nm (N2) node is on track for mass production in the second half of 2025, the Economic Daily News reported. With a higher price of roughly $30,000 per wafer, N2 is expected to give a significant lift to revenue and outperform 3nm in profitability, the report adds.

Despite the high cost of 2nm, TechNews reports that six tech giants—Apple, AMD, Qualcomm, MediaTek, Broadcom, and Intel—are expected to participate in production during the early ramp-up phase.

Read more

• [News] TSMC 2nm Customer Surge: 15 Clients Reportedly Secured, 10 in HPC
• [News] TSMC’s U.S. Investment Could Lead to 15% Price Hike, with AMD and NVIDIA Cheering on the Expansion

(Photo credit: TSMC)