TSMC Raises Prices 5-10% on 7nm to 2nm Chips, Wafer Revenue Hits $58,500

TSMC is raising prices for its advanced semiconductor manufacturing services, a move that will increase costs for major technology companies producing CPUs, GPUs, and AI chips. This price hike affects the entire supply chain for high-end electronics, meaning device manufacturers face higher production expenses. Buyers of premium smartphones and computers may eventually see these increased costs reflected in retail prices.

Major clients face higher costs as wafer revenue reaches $58,500

The price increase applies to TSMC's advanced process nodes, ranging from the mature 7nm technology to the newly mass-produced 2nm architecture. Major clients including Apple, NVIDIA, AMD, Qualcomm, MediaTek, and Broadcom are all subject to these new pricing terms. This broad coverage ensures that virtually all major players in the high-performance chip market are impacted by the change.

• Price Increase Range: 5-10%
• Revenue per 300mm Wafer: $58,500
• Q1 Revenue: $35.9 billion
• Q1 Gross Margin: 66.2%
• Affected Process Nodes: 7nm, 5nm, 3nm, 2nm

The estimated price increase falls within a range of 5 to 10 percent, though the exact percentage varies by customer and product category. Revenue per 300mm wafer has risen to approximately $58,500, reflecting the high demand for these manufacturing services. TSMC reported a first-quarter revenue of $35.9 billion with a gross margin of 66.2 percent, demonstrating strong financial performance despite the market shifts.

The specific increase amount depends on individual client agreements and the complexity of the process nodes involved. TSMC's Arizona fabrication plant capacity is fully booked through 2027, indicating sustained demand for its manufacturing capabilities. This full booking suggests that the company has significant leverage in setting prices for its advanced technologies.

TSMC has confirmed a price increase across all its advanced process nodes, impacting major technology clients. The hike ranges from 5 to 10 percent, with wafer revenue reaching $58,500. First-quarter financial results show $35.9 billion in revenue and a 66.2 percent gross margin. The company's Arizona fab remains fully booked through 2027.