TSMC Price Hike: Who’s Paying More for Top Chipsets?

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The week where the Snapdragon 8 Elite Gen 5 and Dimensity 9500 are set to be officially unveiled by Qualcomm and MediaTek, respectively, has commenced. While we focus on their specifications and numerous changes, one aspect that was previously unaddressed is pricing. According to a recent report, TSMC has not provided any discounts for using its newer 3nm ‘N3P’ technology. Consequently, customers have had to pay up to 24 percent more for their System-on-Chip (SoC) products.

Despite the 3nm process offering marginal benefits—such as a 5 percent performance boost at the same power consumption and between 5-10 percent energy savings at the same frequency—Qualcomm and MediaTek have been compelled to pay higher amounts. China Times reports that Qualcomm faced a 16 percent premium, while MediaTek paid 24 percent more for TSMC’s 3nm ‘N3P’ node. However, the report does not specify if these figures are compared to their direct predecessors—the Snapdragon 8 Elite and Dimensity 9400.

Additionally, Apple’s A19 and A19 Pro processors were mentioned but no specific financial details regarding its dealings with TSMC were provided. Industry insiders suggest that the price of 3nm ‘N3P’ wafers has increased by 20 percent compared to the 3nm ‘N3E’ process, potentially meaning Apple could have paid the difference.

While Apple is somewhat insulated from these price hikes due to its limited use of A19 and A19 Pro in its devices, other smartphone manufacturers will likely face higher costs. TSMC’s 2nm wafers are estimated to be even more expensive—50 percent more than current prices—but Qualcomm and MediaTek may struggle with adequate supply as Apple previously secured a significant portion of the initial capacity.