TSMC to Raise Advanced Node Prices for Four Years

Driven by soaring demand for AI chips and high-performance computing (HPC), TSMC is reportedly implementing a major strategic shift. According to sources in the semiconductor supply chain, the world's leading foundry has informed all customers that it will raise prices for its advanced nodes — 5nm, 4nm, 3nm, and 2nm — consecutively over the next four years.

The price adjustment, announced internally in September 2025, is expected to take effect starting in 2026. The increases will reportedly follow a “compound” model, meaning each year's hike will be calculated on top of the previous year's rate. While specific figures remain confidential, industry chatter suggests a potential double-digit percentage rise.

To meet growing demand for advanced processes, TSMC has been reallocating manpower and resources from mature nodes to technologies at 5nm and below. As a result, production capacity for 6nm and 7nm nodes is expected to shrink. Although some capacity was temporarily freed up when major clients like NVIDIA shifted orders to 5nm and 4nm, the reallocation of equipment and staff means customers without long-standing relationships with TSMC may face tighter supply starting in 2026.

Reports also indicate that the upcoming price hikes will apply uniformly to all customers, with no preferential treatment. This move reflects the industry's strong appetite for cutting-edge manufacturing nodes, which has exceeded market expectations.

According to data from TrendForce, wafer fabs are already benefiting from rising demand for AI-related power management chips and are planning broader price adjustments by 2026. Although exact ranges and rates were not disclosed, the overall market sentiment suggests a clear trend toward sustained price increases.

Financially, TSMC's advanced process revenue accounted for 74% of its total in Q3 2025, with 5nm contributing 37% and 3nm 23%. That's a notable rise from about 69% in 2024. As 2nm mass production begins in 2025 — amid strong market enthusiasm — analysts expect advanced process revenue share to reach around 75%, reinforcing TSMC's dominance in next-generation semiconductor manufacturing.