#TSMC

Unlike the old Intel x86 processors used in Macs before 2020, these chips would still be Apple-designed Arm-based silicon, with Intel acting only as a foundry while TSMC continues to handle the bulk of M-series production. TSMC, the world’s largest chipmaking company, is set to raise prices by 8 to 10 percent for its most advanced chips starting in 2026, according to reports from South Korea. The price hike is linked to the high cost of developing new chip technology, especially TSMC’s upcoming 2-nanometer chips, which are expected to be used in future devices. TSMC controls about 70 percent of the world’s advanced chip supply, giving it strong influence on pricing. Because many tech companies depend on TSMC, phone and computer makers may have to either absorb the higher cost or raise product prices. Currently, Samsung makes the AI4 chip used in Tesla’s Full Self-Driving (FSD) system, but its rival, TSMC, secured the AI5 chip contract. The Apple M5 series will be built on TSMC’s advanced N3P (3nm) process, promising 5-10% lower power consumption and 5% higher performance compared to the M4 generation. Additionally, Intel has had to partially rely on external manufacturers like TSMC to produce its most advanced chips, a departure from its previous strategy. Read more in our articles including "Apple may tap Intel again to manufacture future M-series Mac chips" and "TSMC to Raise Prices for Advanced Chips Starting 2026".