- TSMC’s price increases apply to chips for Apple, Samsung, and other Android manufacturers.
- Higher production costs may lead to higher prices for flagship smartphones and computers or lower margins for device makers.
- For TSMC, the increases mean higher revenues and potential margin improvement due to its leading position in the advanced chip market.
- TSMC’s price increases apply to chips for Apple, Samsung, and other Android manufacturers.
- Higher production costs may lead to higher prices for flagship smartphones and computers or lower margins for device makers.
- For TSMC, the increases mean higher revenues and potential margin improvement due to its leading position in the advanced chip market.
Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, has announced an 8 to 10 percent increase in prices for its most advanced processors, effective from 2026. The changes will affect chips used in flagship smartphones, high-performance computers, and artificial intelligence systems, including Apple processors and key chips from major Android manufacturers.
The largest cost increase concerns the new 2-nanometer production process, which will power next-generation devices. Higher costs are driven by TSMC’s substantial investments in factories and advanced equipment required to manufacture these chips. Smartphone and computer manufacturers will need to decide whether to absorb these higher costs within their margins or pass them on to consumers, potentially impacting the prices of new devices.
Apple plans to use 2-nanometer processors only in select iPhone 18 models, indicating that costs may limit the availability of the latest technology across the full product range. Similar challenges are expected for Samsung, Qualcomm, and MediaTek, which could result in higher prices for flagship Android smartphones in 2026.
The price increases also have financial implications for TSMC. Higher chip prices will contribute to revenue growth, and thanks to its dominant market position, the company can maintain or even improve profitability despite rising production costs. TSMC’s clients will need to decide whether to pass higher costs to consumers or reduce their own margins, affecting device prices or hardware manufacturers’ profitability. Over the longer term, TSMC’s pricing policy reflects broader industry trends – higher costs for advanced chip production are becoming the new norm, while the company benefits from growing demand for AI and high-performance chips, strengthening its financial and market position.
Source: xStation5
Extended decline at the end of a week! 🚨
US OPEN: Market extends decline at the end of the week
CAD Gains on Strong Canadian Labor Market Data 💡
Constellation Energy: Mixed Results for Q3 2025
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.
