Rising TSMC Costs Drive Up Prices for Snapdragon, Dimensity Chips

TSMC 3nm Chip Price Hike Threatens Costlier Flagship Phones.Smartphone buyers may soon pay more for top-tier devices. Chipmakers Qualcomm and MediaTek face steep price increases for their newest processors.Taiwan Semiconductor Manufacturing Company (TSMC) is charging significantly more for its advanced 3nm manufacturing. This cost will likely be passed on to consumers.

Substantial Cost Increases for Next-Gen Smartphone Chips

TSMC’s premium 3nm ‘N3P’ node comes with a hefty price tag. According to a China Times report, the foundry has not offered discounts for the newer technology.MediaTek is reportedly paying a 24 percent premium for the process. Qualcomm is facing a 16 percent price increase for its Snapdragon 8 Elite Gen 5 chip.The advanced 3nm process offers modest efficiency gains. It provides a 5 percent performance boost at the same power or 5-10 percent energy savings.

Consumers Expected to Bear the Financial Burden

This price hike will directly impact the cost of future flagship smartphones. Chip designers Qualcomm and MediaTek are expected to raise prices for their device-making partners.Companies like Samsung, Xiaomi, and Oppo will likely increase retail prices to maintain profit margins. This could push premium phone prices into new territory.The situation is not expected to improve with next-generation technology. TSMC’s upcoming 2nm wafers are estimated to cost 50 percent more than current nodes.

 

The TSMC 3nm chip price increase represents a significant shift in semiconductor economics. Consumers should prepare for a new era of more expensive flagship mobile devices as these costs ripple through the supply chain.

Info at your fingertips

Why did TSMC raise its prices for 3nm chips?

TSMC is charging more for its latest 3nm ‘N3P’ manufacturing process. The company has not offered discounts despite the technology offering only incremental gains over previous nodes.

Which companies are most affected by this price increase?

Qualcomm and MediaTek are directly paying 16-24 percent more for TSMC’s services. Smartphone manufacturers like Samsung and Xiaomi will then face higher component costs.

Will Apple’s iPhone prices also increase?

Apple likely faces similar cost increases for its A-series chips. However, the report did not specify pricing details for Apple’s arrangement with TSMC.

How much more expensive will phones become?

Exact price increases for end consumers remain uncertain. The additional cost will vary by manufacturer and how much they choose to pass on to buyers.

Are other chip technologies becoming more expensive?

Yes, TSMC’s upcoming 2nm process is estimated to be 50 percent more expensive. This suggests the trend of rising chip manufacturing costs will continue.