TSMC’s 2nm Technology Customers Can Relax; Wafers 10-20% Costlier Than 3nm, But With Important Conditions

TSMC is preparing to implement a price increase for its highly anticipated 2nm N2 wafers, initially leading to speculation that major clients like Apple, Qualcomm, and MediaTek could face markup costs of up to 50%.However, recent insights suggest that the actual increase will range between 10-20%.This moderate price adjustment is largely due to TSMC’s decision to escalate costs for its existing 3nm technology, creating an impactful ripple effect across the semiconductor market.

Price Difference Between TSMC’s 2nm and 3nm Wafers

The projected unit price for the 2nm N2 wafers will mirror that of the current 3nm units, remaining at $30, 000 each. TSMC is on track to start mass production by the end of 2025. Notably, Qualcomm is accelerating its shift to the N2P node for the upcoming Snapdragon 8 Elite Gen 6, indicating a strong demand for TSMC’s latest technology. Industry analysts estimate that the high costs associated with these wafers will inevitably drive up the retail prices of consumer electronics, particularly smartphones and tablets.

While clients can expect to absorb these additional costs, the differentiator between 2nm and 3nm technology may not be as stark as initially thought. According to a report from Investor, the anticipated 10-20% price increase reflects TSMC’s planned hikes in its ‘N3E’ and ‘N3P’ nodes, which are expected to cost $25, 000 and $27, 000 per wafer, respectively. This adjustment suggests a shifting financial landscape for companies looking to utilize TSMC’s previous manufacturing nodes for their various chip designs.

In earlier discussions, it was noted that Qualcomm and MediaTek experienced price increases of approximately 24% for their Snapdragon 8 Elite Gen 5 and Dimensity 9500 models, attributed to the transition to TSMC’s 3nm ‘N3P’ architecture. This history of price hikes implies that these chipmakers may have already incurred some of the recent increases ahead of this news. Fortunately, the disparity between the costs of transitioning from 3nm to 2nm may appear less staggering than originally anticipated, although the $30, 000 price point still presents a substantial barrier for many clients.

For more details, visit the original article on Investor.

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