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TSMC to raise advanced node prices for fourth straight year amid 2nm capacity constraints
Monday, December 1, 2025 at 08:44 PM
TSMC is reportedly planning to increase prices for its advanced semiconductor nodes for the fourth consecutive year, effective January 1, 2025, as 2nm manufacturing capacity becomes increasingly constrained by high demand for AI chips.
Context
TSMC is set to implement its fourth consecutive year of price increases for advanced nodes starting January 1, 2025. This adjustment follows unprecedented demand for 2nm and 3nm capacity, primarily driven by the AI boom and high-performance computing needs from major clients like Apple and Nvidia. As TSMC prepares for mass production of its 2nm node in 2025, the company faces extreme capacity constraints, allowing it to leverage its dominant market position to offset rising electricity costs and massive R&D spending.
Reports suggest price hikes of approximately 5% for advanced process wafers and potential increases of 10% to 20% for CoWoS advanced packaging services. This aggressive pricing underscores TSMC’s confidence in its technological lead as competitors struggle to match its yields. For investors, these recurring hikes signal sustained margin protection and a successful pass-through of inflationary costs to a captive customer base that has few alternatives for high-end silicon.
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