Taiwan Semiconductor Manufacturing (TSM.US) has reportedly begun notifying major clients, including Apple (AAPL.US), about upcoming price increases for its advanced-node chips. The hikes could reach as high as 8%-10% for certain customers and production lines. The affected processes primarily include 5nm and below, which are widely used in high-end electronics like smartphones and GPUs.

As the world's leading semiconductor foundry, Taiwan Semiconductor Manufacturing supplies chips to companies such as Apple, Nvidia (NVDA.US), and AMD (AMD.US). The company has not yet responded to requests for comment.

Earlier reports suggested that Taiwan Semiconductor Manufacturing had informed clients of a four-year pricing plan starting January 2026, with average increases of 3%-5% for sub-5nm nodes. Additionally, the company indicated that 2nm chip pricing would be at least 50% higher than 3nm chips, reflecting both substantial R&D investments and early-stage yield challenges, with no discounts currently offered.

Supply chain sources estimate that flagship mobile chips based on 2nm technology could cost up to $280 per unit. If these costs are not passed on to consumers, they may become the most expensive component in Apple’s iPhones, significantly impacting the company’s profit margins.