According to industry insiders, TSMC has notified major customers, including Apple, that it will raise the wafer foundry prices for its 5nm and below advanced process nodes starting in 2026, with an expected increase of around 8% to 10%.
Previous reports have indicated that, driven by surging demand for advanced process chips in AI, high-performance computing, and mobile devices, TSMC has shifted significant manpower and resources toward its 5nm and more advanced technologies. However, due to overwhelming customer demand, TSMC is now expected to gradually raise prices for its advanced process nodes over the next four years.
Currently, TSMC is actively advancing mass production of its 2nm process. Compared to the previous-generation 3nm node, the cost of the 2nm process is set to rise sharply, with a price hike of approximately 50%. The cost per 2nm wafer is expected to reach around $30,000. This is largely due to the inherently high production cost of 2nm technology, coupled with initially low yield rates, leaving little room for discounts. As a result, the first wave of customers adopting 2nm chips will need to absorb these high costs.
Analysts believe that the cost of Apple’s upcoming 2nm-based A20 series smartphone chips could rise to around $280 per chip, making them the most expensive component in the next generation of iPhones. If Apple does not pass these costs on to consumers, its profit margins will be squeezed. Therefore, based on cost considerations, Apple may only use the 2nm chips in higher-end models of the iPhone 18 series, such as the Pro and Pro Max versions.
In addition to Apple, AMD has confirmed that its 2nm-based EPYC “Venice” CPUs and Instinct MI400 GPUs are scheduled for release in 2026.
According to TSMC’s financial report for the third quarter of 2025, advanced process nodes already account for as much as 74% of its total production, with 5nm making up 37% and 3nm 23%. This represents further growth compared to 2024, when advanced processes accounted for 69%. With the start of 2nm mass production in 2025 and strong market response, it is expected that the proportion of revenue from advanced processes will reach around 75% in 2025.

Define the production contract first

Agree on expected quality, latency, cost and failure behavior before optimizing individual components. A subsystem can look healthy while violating the end-to-end user objective.

Make state ownership explicit.

Models, queues, caches and databases often hold overlapping representations. Each durable state should have one authoritative owner and a version so stale copies cannot silently win.

Test degradation and recovery

Simulate unavailable dependencies, stale caches and overload. Production systems need predictable fallbacks and a clear path back to normal operation rather than manual repair for every incident.

Define the production contract first.

Agree on expected quality, latency, cost and failure behavior before optimizing individual components. A subsystem can look healthy while violating the end-to-end user objective.

Make state ownership explicit

Models, queues, caches and databases often hold overlapping representations. Each durable state should have one authoritative owner and a version so stale copies cannot silently win.

Test degradation and recovery.

Simulate unavailable dependencies, stale caches and overload. Production systems need predictable fallbacks and a clear path back to normal operation rather than manual repair for every incident.

Define the production contract first

Agree on expected quality, latency, cost and failure behavior before optimizing individual components. A subsystem can look healthy while violating the end-to-end user objective.

Make state ownership explicit.

Models, queues, caches and databases often hold overlapping representations. Each durable state should have one authoritative owner and a version so stale copies cannot silently win.

Test degradation and recovery

Simulate unavailable dependencies, stale caches and overload. Production systems need predictable fallbacks and a clear path back to normal operation rather than manual repair for every incident.

How to read the development beyond the headline.

The reported development is most useful when separated into confirmed facts, forecasts and interpretation. Product timelines, pricing, supply constraints, regulation and customer adoption can all determine whether an early headline becomes a durable shift.

Readers should update the thesis as concrete follow-through appears instead of treating an initial announcement or market reaction as the final outcome.

What to watch next

Useful signals include shipped products, independently observed performance, customer commitments, pricing changes, financial guidance and regulatory decisions. Those indicators show whether the development is changing real operations rather than only sentiment.