TSMC's Gross Margin to Keep Rising with Price Hikes and Customer Demand
TapTechNews July 7th news, according to the Securities Times report, Macquarie Securities pointed out in the newly released report that according to the supply chain investigation, most of TSMC's customers have agreed to raise the foundry price in exchange for reliable supply, which will drive TSMC's gross profit margin to climb further.
According to analyst estimates, The gross profit margin of TSMC will climb to 55.1% in 2025; it will approach 60% in 2026, reaching 59.3%. Industry insiders said that this price increase may be based on considerations such as market demand, production capacity, and cost. It is reported that Apple, Qualcomm, NVIDIA, and AMD have snapped up the manufacturing capacity of TSMC's 3nm family process, and there is a rush of customers queuing up, all the way to 2026. Currently, the price increase news in the semiconductor industry chain is becoming more and more intensive, including Qualcomm, TSMC, Hua Hong and other manufacturers, covering IC design, chip foundry and other links, and due to the AI wave, the price increase of DRAM (memory) and SSD (solid state drive) is also more obvious.
TapTechNews reported earlier this month that sources @Mobile Chip Expert revealed that TSMC is preparing to announce a price increase from January 1 next year, mainly for 3/5nm, and other processes remain at the original price. Allegedly, TSMC plans to increase the AI product quotation of its 3/5nm process by 5%-10%, and non-AI products by 0-5%.
In fact, last month, the Taiwan region's China Times also said that TSMC has begun to spread the price increase news. The world's seven major technology giants (NVIDIA, AMD, Intel, Qualcomm, MediaTek, Apple, and Google) will successively adopt TSMC's 3nm process. For example, Qualcomm Snapdragon 8 Gen4, MediaTek Dimensity 9400 and Apple A18, M4 series will all be built with the N3 family. Among them, Qualcomm Snapdragon 8 Gen4 based on N3E process has taken the lead in increasing the price, with a 25% increase compared to the previous generation's quotation, which is expected to exceed 250 US dollars.