Driven by the demand for AI chips and high-performance computing (HPC), leading wafer foundry TSMC is undergoing significant strategic adjustments. According to supply chain sources, TSMC has rarely announced to all clients a four-year consecutive price increase for its four advanced technologies: 5nm, 4nm, 3nm, and 2nm. TSMC declined to comment on the matter.

The report indicates that the price hike was announced in September 2025 and is expected to take effect starting 2026, with increases continuing for four consecutive years. The increment is calculated using a "compound interest" method, meaning it accumulates continuously on the original price. While the exact percentage remains a trade secret, it is rumored to be in the double-digit range.

To meet the enormous demand for advanced processes, TSMC has shifted a significant amount of manpower and resources from mature processes like 6nm and 7nm to cutting-edge technologies such as 5nm and below. The consequence of this resource reallocation is a de facto reduction in production for mature processes. Although orders from major clients like NVIDIA have shifted to 5nm and 4nm, temporarily freeing up 6nm/7nm capacity for TSMC, the transfer of equipment and personnel has left mature process clients—who may not have had strong prior relationships with TSMC—facing potential supply shortages starting in 2026.

Additionally, the report also pointed out that TSMC's recent price hike applies comprehensively to all customers without individual exceptions. This situation reflects stronger-than-expected demand for related advanced processes in the market. According to data previously released by market research and survey firm TrendForce, wafer foundries, benefiting from AI-driven demand for power management chips, have planned a comprehensive price increase for 2026. Although the report did not specify the extent or scope of the price hike, this sentiment has already set the stage for a pricing trend.

In fact, according to the previously announced financial report for the third quarter of 2025, the proportion of advanced processes reached as high as 74%, with 5-nanometer processes accounting for 37% and 3-nanometer processes accounting for 23%. Compared to the approximately 69% share of advanced processes in 2024, this represents further growth. In 2025, 2-nanometer processes will begin mass production, and with strong market response to the 2-nanometer process, the market also anticipates that TSMC's revenue from advanced processes will reach around 75% in 2025.