TSMC to raise 3nm chip prices up to 15% as AI demand surges

TSMC ↗6.94% plans to hike 3nm chip prices by up to 15% in the second half of 2026, according to supply chain reports.biggo
The increase follows 3%–10% hikes already implemented in January and reflects surging demand for AI accelerators and custom silicon outstripping available capacity.trendforce
Major customers including Apple ↗0.70%, AMD ↗4.86%, and Qualcomm ↗6.17% face higher component costs as TSMC leverages its near-monopoly in advanced chipmaking.cryptobriefing

TSMC Plans Up to 15% Price Hike on 3nm Chips in Second Half of 2026

Taiwan Semiconductor Manufacturing Company is preparing to raise prices on its 3nm process node by as much as 15% in the second half of 2026, according to supply chain reports that surfaced over the weekend, with a further 5% to 10% increase possible in 2027.x

The planned hike, driven by surging demand for AI accelerators and custom silicon, would mark the chipmaker’s second round of price increases this year. TSMC had already implemented increases of 3% to 10% on advanced nodes below 5nm at the start of 2026, following notifications to clients in late 2025.trendforce

AI Demand Outpaces Supply

The latest price adjustment reflects an imbalance between supply and demand for TSMC’s most advanced manufacturing capacity. AI and high-performance computing demand reportedly exceeds available 3nm supply by nearly three times, even as the company works to ramp production capacity in Taiwan to 180,000 wafers per month by the end of 2026 — a more than 40% year-over-year increase.cryptobriefing

The custom ASIC market is a key driver of the capacity crunch. Broadcom and Marvell together control roughly 95% of the AI ASIC co-design market, while Nvidia continues to hold about 70% of the broader AI chip market. Custom ASIC shipments are projected to grow 44.6% year-over-year in 2026, nearly triple the 16.1% growth rate expected for merchant GPUs.tomshardware

Pricing Power Reflects Dominance

TSMC’s ability to push through consecutive price increases reflects its near-monopoly position in advanced chip manufacturing. Current 3nm wafer prices sit at approximately $20,000 each, and the company’s upcoming 2nm node is expected to push costs above $30,000 per wafer.eetimes

The company reported a 58.3% year-over-year net profit increase in the first quarter of 2026, with gross margins reaching 66.2%. In January, TSMC said it would lift capital spending by at least a quarter to as much as $56 billion in 2026.tradingkey

Apple, which uses 3nm chips in its iPhones and M-series processors, AMD, and Qualcomm are among the major customers that will face higher component costs as the increases take effect.cryptobriefing