TSMC has reportedly halted new 3nm project starts and increased 3nm pricing. This move aims to encourage customers to adopt 2nm technology, as 3nm capacity constraints are expected to persist, and expansion cannot meet demand. The report suggests that 2nm wafer costs are more favorable for high-volume products than previously anticipated due to stable EUV layer processes. TSMC's existing 3nm capacity is fully reserved by AI and smartphone chip manufacturers.