Apple, Qualcomm, MediaTek, and Other Companies Likely to Increase Chipset Prices Due to TSMC’s Rising 2nm Wafer Costs, Leading to Higher Device Prices

Recently, TSMC has begun accepting orders for its highly anticipated 2nm wafers, with each one reportedly costing around $30, 000. While there is no confirmation on whether TSMC will be able to reduce prices when production scales up, this high cost poses significant challenges for major companies like Apple, Qualcomm, and MediaTek. These technology giants face a dilemma: they are eager to leverage advanced technology but may struggle to maintain competitive pricing. As a consequence, the integration of this next-generation silicon into smartphones and tablets could result in elevated retail prices.

Avoiding Price Increases with the 3nm Process in 2024

Although TSMC’s production ramp-up for 2nm wafers is still underway, forecasts indicate that the increased costs associated with this manufacturing process could lead companies like Apple, Qualcomm, and MediaTek to raise the prices of their chipsets. According to analyst Ming-Chi Kuo from TF International Securities, not all models of the upcoming iPhone 18 will incorporate the 2nm A-series SoC due to these wafer costs. It is anticipated that only the premium iPhone 18 Pro and iPhone 18 Pro Max will feature this cutting-edge technology.

Looking ahead to 2026, Qualcomm is reportedly developing two distinctive 2nm chipsets, including the Snapdragon 8 Elite Gen 3. However, Qualcomm recognizes the risks of dependence on TSMC alone. To diversify its supply chain, the company is actively considering partnerships with Samsung to utilize its advanced node technology. Meanwhile, MediaTek is poised to capture a larger market share with its upcoming Dimensity 9600, which will be priced attractively for phone manufacturers.

While the concerns about potential price hikes for 2nm chipsets are valid, it’s worth noting that demand for these wafers is currently exceeding that for the 3nm variants. Hence, there remains a possibility that TSMC may lower its prices as production scales develop. We advise readers to remain cautious regarding these reports, and we will continue to provide updates on this evolving situation.

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