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 increase will affect chips made using processes below 5 nanometers, which are used in devices such as smartphones, computers, and artificial intelligence systems. Major customers like Apple have already been notified.
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. These chips are more powerful and energy-efficient but require new manufacturing tools and facilities. Reports say that a 2-nanometer chip could cost much more than today’s chips. For example, the chip used in the iPhone 16 reportedly costs about $45, while future chips could cost around $280 each once mass production begins.
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.
The effect of this price increase may be seen in new devices released in 2026, including Apple’s iPhone 18 and Samsung’s Galaxy S26, which are expected to use more advanced chips.
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