A recent report from China suggests that TSMC has quietly raised the cost of its 3nm-class N3P node and not by a small margin. The TSMC N3P price increase reportedly reaches up to 24% for some clients, with Qualcomm and MediaTek bearing the brunt.
Apple sidesteps TSMC N3P price increase
While the Apple A19 and A19 Pro also use the N3P node, Cupertino may have avoided the worst of it. According to the China Times, there’s no mention of Apple facing similar hikes. That silence likely points to a discount or special arrangement.
Apple, after all, is TSMC’s biggest client and is expected to contribute up to 25% of its total revenue by 2026. The benefits of that size are now becoming clear.
Qualcomm and MediaTek hit hardest by TSMC N3P price increase
The report outlines the following price jumps compared to the previous generation:
- MediaTek: +24%
- Qualcomm: +16%
- Apple: Not specified (likely lower)
The TSMC N3P price increase comes just ahead of major chip launches, including the Snapdragon 8 Elite Gen 5 and Dimensity 9500. Both are already confirmed to use the N3P node. That means cost increases are effectively baked into the next wave of flagship Android SoCs.
2nm process could raise chip prices even higher
TSMC isn’t stopping at 3nm. The upcoming 2nm node could be even more expensive, with rumors pointing to a minimum 50% hike in production costs. Yield challenges and R&D investments are blamed, and TSMC reportedly isn’t offering any flexibility or discounts to chipmakers.
This could push the unit cost of some SoCs to $280 or more, especially in the 2026 flagship cycle.
TSMC N3P price increase may inflate smartphone prices
If upstream chip prices keep rising, retail prices likely will too. Flagships from Vivo, Oppo, and Xiaomi, expected to run the Dimensity 9500 or Snapdragon 8 Elite Gen 5 may carry steeper price tags than their predecessors.
Samsung’s Galaxy S26, which is said to combine Exynos 2600 and Qualcomm’s next chip, could also feel the effects.
Apple may stay immune everyone else pays more
The TSMC N3P price increase is real, and so are its downstream effects. MediaTek and Qualcomm now face tighter margins. Apple, thanks to volume and leverage, may once again dodge the pain. But for most users, the end result could be simpler: the next smartphone you want might just cost more than it should.
{{user}} {{datetime}}
{{text}}