TSMC is preparing another price increase of 3% to 6% on advanced wafer manufacturing for the first quarter of 2027. Soaring electricity expenses and production overhead are driving the adjustment following earlier increases of 10% to 20%. The move comes as tight 2 nanometer capacity pushes major clients like Qualcomm and AMD to consider Samsung as a second foundry option.
News outlet digitimes reports that orders for the 2 nanometer node have jumped well beyond initial expectations. TSMC responded by lifting its order targets by 15% to 20% compared to earlier projections. To handle the volume, the manufacturer has shifted 5 dedicated production fabs across Hsinchu Baoshan and Kaohsiung into full operation. Despite running at maximum output, the concentration of client orders has left several chip designers without additional wafer allocations.
Rising wafer costs and heavy reliance on a single supplier are forcing semiconductor firms to reevaluate their manufacturing partnerships. Designers including Qualcomm and AMD are seeking ways to protect profit margins and diversify production risks. Securing allocation from alternative sources has become a priority as access to premier silicon tightens across the industry.
Samsung Electronics sees this capacity squeeze as a direct opportunity to expand its foundry business. The company is accelerating progress on its generation 2 2 nanometer process known as SF2P, aiming for production yields above 70%. If Samsung proves stable yield rates at volume, the Korean foundry stands to capture substantial orders from clients looking to escape rising prices and allocation caps.
