tsmc sets price for cutting-edge 3nm wafers
Hsinchu City, Thursday, 9 January 2025.
Taiwan Semiconductor Manufacturing Company (TSMC) has announced the pricing for its advanced 3nm wafer foundry services at $18,000 per wafer. This new pricing structure is crucial for stakeholders evaluating TSMC’s market position and financial outlook. The decision is expected to influence the company’s stock valuation and competitive standing in the semiconductor industry. As TSMC sets this price, it positions itself strategically in a rapidly evolving market. The potential impact on the semiconductor landscape and investor interest is significant, highlighting TSMC’s role in the industry’s future.
Market impact and pricing strategy
The $18,000 per-wafer price point for TSMC’s 3nm technology represents a strategic positioning in the high-end semiconductor market [1]. This pricing decision comes as TSMC maintains its technological leadership position, with the company currently achieving a 60% yield rate for its advanced 3nm process [5]. Industry analysts note this pricing strategy could impact TSMC’s relationships with major clients like Apple, which has reportedly adjusted its chip adoption timeline due to cost considerations [GPT].
Competition and market dynamics
TSMC faces emerging competition in the advanced chip manufacturing space. Samsung Electronics is preparing to begin trial production of 2nm chips in the first quarter of 2025 [5], while Japanese manufacturer Rapidus aims to start 2nm production by 2027 [5]. This competitive landscape has prompted some major tech companies to consider diversifying their supply chains, with reports suggesting companies like NVIDIA and Qualcomm might explore partnerships with Samsung for their advanced chip needs [5].
Production capacity and future outlook
TSMC’s production capacity for advanced nodes is set to expand significantly. By 2026, the company’s 2nm wafer production is expected to reach 70000 wafers per month, up from an initial 10,000 wafers during the trial period [5]. This expansion demonstrates TSMC’s commitment to maintaining its market leadership position, despite increasing pressure from competitors [GPT]. The company’s ability to scale production while maintaining quality will be crucial for its market position [GPT].