A significant price increase is on the horizon for TSMC’s 2nm manufacturing process. According to the latest information, the company’s costs for next-generation technologies are rising, and this increase could reach as much as 50%.

TSMC Prepares to Raise Prices

Prices are rising, particularly for N2 and its derivatives. This increase is reportedly due to global semiconductor inflation and TSMC’s significant capital expenditures for the transition to 2nm technology. At this stage, there is no possibility of discounts or negotiations for manufacturers.

While the latest manufacturing technologies are typically first seen in smartphone chips, the situation is different for the 2nm process. Demand has shifted from mobile products to High-Performance Computing (HPC) products. Nvidia and AMD are among the first companies to adopt this technology.

Ten of TSMC’s 15 2nm customers are HPC-focused companies. This may be a factor in TSMC’s decision to increase prices. This is because HPC customers have more flexibility to accommodate their high capital expenditures.

Products to be produced using the 2nm process include Nvidia’s Rubin Ultra series and AMD’s Instinct MI450 AI accelerators. On the consumer electronics front, it has been announced that RTX “Rubin” graphics cards and AMD’s Zen 6 processors will also be produced using this process.

This suggests a high adoption rate. If a 50% price increase is realized, consumer products like next-generation CPUs and GPUs are expected to be sold at significantly higher prices. What are your thoughts on this? Share your thoughts in the comments section below.