TSMC has price increases of 5-10% for 3nm, 5nm processes and 15-20% for CoWoS packaging in 2025

TSMC is expected to drive up the prices of its 5nm and 3nm process nodes by 5-10% and its CoWoS advanced packaging by 15-20% thanks to unstoppable AI demand.

2

In a new post by LTN, we're learning that reports from the semiconductor industry that will see TSMC driving up the prices of its 5nm and 3nm advanced processes, which will fall in line with foundry prices for advanced packaging production capacity. We all know TSMC dominates the semiconductor world, and since they're the only ones capable of making the world's most advanced chips, price increases are on the way in 2025.

AI demand is also driving up TSMC's advanced process node and advanced packaging costs, with 3nm a nd 5nm nodes having tight production on capacity, with price rises of 5-10% expected starting in January 2025, while CoWoS advanced packaging costs will increase 15-20% as the market is oversaturated with mature processes.

TSMC's new 3nm process node accounts for around 20% of their Q3 2024 revenue, its 5nm node accounts for around 32% while older process nodes account for 52% of quarterly revenue.

• Read more: TSMC's 5nm, 3nm production lines remain 'fully loaded' in 1H 2025
• Read more: TSMC could build CoWoS advanced packaging plants in the US and Japan because of AI demand

We reported a few months ago that TSMC's newer 5nm and 3nm production lines were "fully loaded" through to the first half of 2025 with strong orders of AI chips... but now come the price increases to go along with that.