According to a report by Digitimes, TSMC is considering raising its contract manufacturing prices for advanced technology next year by 5% to 10%, due to various factors such as US tariffs, exchange rate fluctuations, and supply chain prices.

At present, TSMC has already provided its partners with the price increase for advanced processes such as 5nm, 4nm, 3nm, and 2nm. The good news is that the price of mature processes may decrease, as domestic chip foundries have already cut prices in this area.

The price increase between TSMC and its customers will be a game process, and not all customers may experience the same increase. However, the latest data shows that TSMC has already accounted for 70.2% of the wafer foundry market, breaking through the 70% mark for the first time.

There are also some mature processes here. If we only consider advanced processes below 7nm, TSMC's market share is estimated to account for as much as 90% or even 95%. In short, it is a monopolistic advantage, and it is not easy for customers to refuse price increases.

In terms of process outsourcing, TSMC's previous 28nm wafer outsourcing cost only $3000, while 7nm has risen to $10000, 5nm is $16000, 3nm is $20000, and the latest 2nm process is expected to start at least $30000, exceeding RMB 200000.

If the price increases by 10%, the price will further rise, and mobile phone chips using TSMC's 3nm and 2nm processes such as Apple, Qualcomm, and MediaTek will inevitably increase in price. There have been reports that mobile phone processors will increase in price by 5%.

Of course, NVIDIA's GPU chips will also be affected. The current Blackwell generation is still customized with 5nm 4N technology, and next year's Rubin will be upgraded to 3nm technology, also facing price increases.