Chip price surge is here! TSMC reportedly raises 2nm prices by at least 50%, Samsung and SK Hynix have already increased prices.

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The global semiconductor industry is experiencing a new wave of price hikes!

On Tuesday, media reports stated that the price of TSMC’s 2nm process is at least 50% higher than 3nm, and the price of the final generation of 3nm CPUs has increased by about 20% compared to the previous generation. At the same time, memory chip giants Samsung, SK Hynix, and other manufacturers have taken the lead in raising product prices, accelerating the fermentation of semiconductor inflation.

According to industry sources, TSMC’s latest 2nm process will begin mass production this quarter, but due to the huge capital expenditure required for advanced processes, TSMC currently has no discount or bargaining strategies. The supply chain estimates that the unit price of flagship chips using the 2nm process could reach as high as $280.

Driven by strong demand for memory from AI data centers, Samsung sharply raised memory and flash product prices this week, with DRAM prices soaring by up to 30%, and lead times being extended from one month to more than half a year. Competitors such as Micron and SanDisk are also following suit with similar price increases.

TSMC 2nm Process Price Hike Exceeds Expectations

TSMC’s 2nm process pricing strategy shows the dominant position of the world’s largest chip foundry. Industry sources report that mobile phone chips will enter the 2nm era next year, but TSMC’s huge capital investments in advanced processes mean that, although yield rates have already met standards, the company is still maintaining a tough pricing strategy.

Compared with the 3nm process, the 2nm process price is at least 50% higher. Initial products will mainly be AI and high-performance computing chips, but by the end of next year, mobile phone chips will gradually enter mass production. This increase far exceeds market expectations and reflects the scarcity and high cost of advanced process technologies.

Currently, Android camp leaders MediaTek and Qualcomm have launched their latest flagship chips, Dimensity 9500 and Snapdragon 8 Elite Gen 5, both using TSMC’s newest N3P process. According to the supply chain, these final generation 3nm flagship chips have already seen price increases of 16% to 24%.

According to Economic News Daily, Apple has further increased its pre-booked share of TSMC’s 2nm capacity from nearly 50% previously to above 50%. As TSMC’s largest customer, Apple contributed 22% of the chip foundry giant’s revenue in 2024, reaching $19.4 billion.

The latest iPhone 17 series A19 chip uses TSMC’s newest 3nm N3P process, and the next-generation A20 will enter the 2nm era. This massive purchase commits gives Apple strong bargaining power in capacity allocation.

Qualcomm and MediaTek also plan to launch their first batches of 2nm chip products by the end of 2026, but Apple’s strategy of monopolizing capacity may force these competitors to face tight supply problems. This concentrated capacity allocation will further widen the chip technology gap between Apple and the Android camp.

Memory Chip Makers Raise Prices Collectively

The memory chip market is experiencing price increases caused by supply-demand imbalances. Samsung sharply raised the prices of memory and flash products this week, with DRAM prices rising by up to 30% and NAND flash prices up 5-10%, due to tight supply and surging demand from cloud companies.

Competitors such as Micron and SanDisk announced similar price hike measures, with Micron raising prices by 20-30% and suspending new orders. Driven by strong demand for memory and hard drives from AI data centers, major manufacturers like Samsung, SK Hynix, Micron, WD, and Sandisk are now seeing lead times for consumer and enterprise products extended from one month to more than half a year.

This wave of price increases reflects the profound impact of the AI boom on the semiconductor supply chain. Persistent demand for data center construction continues to drive up memory purchases, and suppliers’ bargaining power has significantly strengthened.

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