TSMC to Hike Chip Prices 8–10%, iPhone 18 Costs Up

According to reports from U.S. tech media outlets citing industry insiders, TSMC has informed key clients—including Apple—that it plans to raise prices for its sub-5nm advanced process nodes by approximately 8% to 10% starting next year. The move reflects the company's heavy capital investments and the initial yield challenges of next-generation nodes, potentially driving up the chip costs for future iPhones.

Both MacRumors and Apple Insider quoted information shared by leaker yeux1122 on South Korea's Naver platform, who claimed that TSMC had begun notifying major customers of the upcoming price hike. However, reports also noted that yeux1122's track record has been mixed, often reposting unverified information from other sources.

The upcoming 2nm process will be TSMC's first to use Gate-All-Around (GAA) transistors, delivering significant gains in performance and power efficiency—but also leading to much higher production costs. Analysts estimate that 2nm chips will cost at least 50% more than 3nm versions. Apple's next-generation A20 chip, expected to debut in the iPhone 18 Pro series, is likely to be the first commercial 2nm chip, with an estimated unit cost of around $280—making it the most expensive component in the device. If Apple decides not to raise iPhone prices, its profit margins could take a notable hit.

Industry sources reported earlier in November that TSMC's price adjustments reflect rising manufacturing costs this year, with next year's hikes already finalized. Pricing will vary depending on client scale and order volume. TSMC has declined to comment on specific pricing details, emphasizing that its pricing strategy remains value-driven rather than opportunistic, and that it continues to work closely with customers to deliver long-term benefits.

Reports also indicate that TSMC notified customers in September of another small price increase planned for 2026, marking the fourth consecutive year of adjustments. Analysts forecast that advanced process prices could rise by 3% to 10% annually through 2026, aligning with gradually increasing production costs but still considered moderate within the industry.

Historically, TSMC's pricing trends have mirrored shifts in supply, inflation, and production expenses. The company previously canceled sales discounts in 2020–2021, and implemented modest price increases in 2023 amid tight capacity and rising costs. The ongoing adjustments through 2026 signal a continued effort to offset higher operational expenses while sustaining innovation in leading-edge semiconductor manufacturing.