Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US) plans to increase the prices of advanced processes, with some production lines seeing a possible maximum increase of 8% to 10%.

According to reports, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US) has started notifying major customers such as Apple Inc. (AAPL.US) that it will be implementing price increases for its advanced process chips. The report states that the price increase, especially for some customers and production lines, could be as high as 8%-10%. The news indicates that the affected processes are mainly the 5-nanometer and below advanced nodes, which are widely used in smartphones, GPUs, and other high-end electronic devices. As a globally leading chip foundry, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR provides chip manufacturing services to companies such as Apple Inc., NVIDIA Corporation (NVDA.US), AMD (AMD.US), and many others. As of now, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR has not immediately responded to requests for comments. It is understood that there have been previous reports stating that Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR has been notifying customers since September that starting from January 2026, there will be a four-year consecutive price increase plan for advanced processes below 5 nanometers, with an average price increase of about 3%-5%. Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR also mentioned that the pricing for 2-nanometer chips will be at least 50% higher than 3-nanometer chips. This is partly due to the massive capital investment in developing the new process, and partly because the current yield is still at an early stage, so no discount strategy has been adopted yet. The report further indicates that the flagship mobile chip production unit price based on the 2-nanometer process is expected to reach $280. If the cost pressure is not passed on to consumers, this will become the most expensive component in Apple Inc.'s iPhones and will have a significant impact on the company's profit margins.