TSMC 2nm Production Begins, Chip Prices Surge to $30,000/Wafer

Taiwan Semiconductor Manufacturing Co. (TSMC) began production of its 2‑nanometer (2nm) wafers on April 15, 2025, at its Hsinchu facility in Taiwan to meet growing demand for advanced nodes while setting the price at approximately $30,000 per wafer.

TSMC CEO C.C. Wei confirmed during a press briefing that the foundry has accepted its first customer orders for the 2nm process, marking the transition from pilot runs to volume production. “We have set the wafer price to reflect the significant R&D investment and manufacturing complexity,” Wei stated.

The $30,000 per‑wafer cost represents a steep premium over TSMC third‑generation 3nm offerings. Industry sources say the move pressures smartphone and chipmakers to balance access to cutting‑edge performance with tighter margins.

Companies such as Apple, Qualcomm and MediaTek face pricing challenges as they evaluate incorporating the new 2nm node into future products. Higher wafer costs will translate into more expensive system‑on‑chips (SoCs), complicating smartphone pricing strategies.

Smartphone manufacturers typically pass a portion of wafer cost increases to end‑users. Market analysts warn that flagship device prices could rise by $50 to $100 if 2nm SoCs enter mainstream models, depending on yield rates and order volumes.

For now, Apple remains on TSMC third‑generation 3nm node for its A‑series chips. According to analyst Ming‑Chi Kuo, only the iPhone 18 Pro and Pro Max models will adopt 2nm technology when the series launches in autumn 2026. Kuo said Apple will retain 3nm for standard variants to manage costs.

Qualcomm plans its first 2nm designs for 2026, including the Snapdragon 8 Elite Gen 3, but is evaluating Samsung Foundry as a secondary source to diversify supply and negotiate pricing leverage.

MediaTek intends to introduce its Dimensity 9600 chip on the 2nm process at a lower price point than competitors, aiming to attract cost‑sensitive smartphone OEMs. Company executives believe aggressive pricing could accelerate 2nm adoption in mid‑range segments.

TSMC anticipates that wafer costs will decline as production scales and yields improve. The foundry projects that by late 2026, 2nm pricing could fall by 20–30% compared with initial launch rates, based on historical learning‑curve data from prior node transitions.

The 2nm node employs gate‑all‑around transistor architecture to boost performance-per‑watt compared with the 3nm process. TSMC engineers report that the new platform delivers up to 10% higher speeds and 25% lower power consumption in early benchmark tests.

Orders for the 2nm wafers will begin shipping to customers in Q3 2025. TSMC plans to expand capacity at Fab 18 and its forthcoming Arizona facility to accommodate rising demand for advanced nodes.

TSMC’s shift to 2nm volume production marks a critical milestone in semiconductor scaling. Customers will finalize supply agreements over the next quarter, and early adopters are expected to debut 2nm‑based devices at global trade shows in early 2026.