TSMC plans to increase prices for its most advanced wafers by 6% to 8% in the first quarter of 2027. This hike comes on top of a previously announced price increase of 10% to 20%. The company cites rising manufacturing costs and electricity expenses as the primary drivers for this decision.
Demand for TSMC's 2nm process has surged, leading the firm to raise its wafer order targets by 15% to 20%. To meet this demand, TSMC has shifted five dedicated 2nm mass production facilities in Baoshan and Kaohsiung to full operational capacity. This concentration of production has constrained wafer availability for some clients.
Major chip designers like Qualcomm and AMD are now facing higher production costs and supply chain risks. Consequently, some customers are exploring alternative suppliers to mitigate reliance on a single source. This shift has created potential opportunities for Samsung Electronics' foundry business to secure new orders.
Samsung is currently developing its second-generation 2nm process, known as SF2P, with a target yield rate exceeding 70%. If the company successfully validates the stability of this process, it expects to attract clients who are looking to move away from TSMC due to the recent price adjustments and capacity limitations.
