Industry insiders: TSMC's 5/3nm process products will continue to increase in price by approximately 3-8% in 2025

According to IC design companies, TSMC's price hikes will not stop in 2024. In July, it informed multiple customers of the expected price increase for its 5/3nm processes in 2025. Due to the escalating costs, the price increase is expected to be around 3-8%, which will help sustain the immense pressure of maintaining a 53% gross margin in the long run, successfully passing on the burden to its customer base. Industry insiders indicated that TSMC is not only experiencing a continuous surge in HPC orders, including those for AI, but also entering the peak season for consumer electronics shipments. With major orders from Apple, Qualcomm, MediaTek, as well as Intel, AMD, NVIDIA, and Broadcom, TSMC's 3/5nm production capacity will remain fully utilized. The company is expanding its production capacity to meet the robust demand from its customers.