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TSMC wafer average selling prices accelerate past production costs since 2019
Tuesday, December 23, 2025 at 10:44 AM
TSMC's average selling price (ASP) for wafers has seen significant acceleration since 2019, outpacing the cost of goods sold (COGS) after a 15-year period of stagnation.
Context
TSMC has undergone a structural financial shift since 2019, ending a 15-year era of stagnant pricing. Average selling prices (ASPs) are currently outpacing production costs, primarily driven by the industry’s rapid transition to advanced 3nm and 5nm nodes. This change resulted in an incremental gross profit per wafer that expanded 3.3x between 2019 and 2025 compared to the 2005-2019 period. By utilizing EUV lithography to manage extreme design complexity, TSMC has successfully transformed manufacturing hurdles into a high-margin engine.
This trajectory offers a critical roadmap for Intel as it seeks to revitalize its own manufacturing operations. Intel is betting heavily on its 18A node and aggressive EUV adoption to replicate this profitability surge and move away from its legacy cost structures. For investors, the primary focus is whether Intel can achieve the necessary yields and efficiency by its 2027 profitability target to capture the premium pricing power that now defines the leading edge of the global semiconductor supply chain.
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