TSMC Raises Prices for 3nm Chips, Potentially Affecting Next-Gen Android Flagships
In fact, all flagship smartphone processors of the next-gen line, including the Apple A19 series, the Qualcomm Snapdragon 8 Elite Gen 5, and the MediaTek Dimensity 9500, would be running on the advanced N3P process of TSMC. However, a new report from China says TSMC jacked the prices for this technology quite high, which would put undue impact on Android chipmakers.
Staggering N3P Pricing Discrepancies
As China Times quoted, TSMC has usually hiked the price of N3P 3nm process approximately by about 20% more than the previous generation in the process. This reportedly resulted in a 24% additional cost for MediaTek with Dimensity 9500 while Qualcomm has to deal with a hike of about 16% with the Snapdragon 8 Elite Gen 5.
The report does not mention a similar price hike on Apple. Being TSMC's largest customer- accounting for 22-25% of the total revenue by 2026 Apple must have received a more favorable pricing scheme or discount, thus giving it a better cost margin against its competitors.
Hiking Future Prices for 2nm Process and Components
And here is where the trend of rising costs would continue. TSMC is said to raise its new price by "at least" 50% on the next 2nm process node due to high R&D expenditures. This would bring the total unit cost of flagship mobile chips close to $280 next year.
And all of this is compounded by a pinch shortage and price increases for other critical components-from memory to storage-with all major manufacturers, indicating a wider "semiconductor inflation" is in the making.
Effect on Prices of Smartphones
These increased munching costs will finally be passed on to the consumers. Here is what that might mean for the upcoming devices:
- The Latest Android Flagships: The new Vivo, Xiaomi, and Oppo mobiles featuring new Snapdragon and MediaTek chips are probably going to be priced higher than their predecessors.
- Galaxy S26 Series: The flagship of Samsung, whose release is expected to involve a combination of Exynos and Snapdragon chips, will probably be at a higher price.
- 2026 Flagships: Devices that will be releasing towards the end of 2026, like the Apple iPhone 18, will boast of a much higher price tag due to the 50% price increase for 2nm chips.
Industry analysts have said the underlying theory is that these increases are large enough that buyers will weigh costs against performance gains. If the new chips offer such disruptive improvements, sales may remain strong. Otherwise, consumers might delay upgrades, potentially leading to a shift in market preferences toward low-cost devices.
