Most of TSMC's customers agree to raise foundry prices to ensure stable supply

Most of TSMC's customers have agreed to increase foundry prices in exchange for stable supply. In particular, prices have been raised for the latest 3nm node process, which is in short supply in the market. However, prices for the 6/7nm nodes have fallen. Since the capacity utilization rate of the 6/7nm node is only 60%, TSMC will reduce its price by 10% from January 1, 2025. In contrast, due to the short supply of 3/5nm node process capacity, TSMC will increase its price by 5%~10% in 2025. The main reason for this price adjustment is that Apple, Qualcomm, Nvidia and AMD, the four major manufacturers, have booked a large number of TSMC's 3nm family process capacity, resulting in a customer queue that will continue until 2026. Therefore, the price of Qualcomm Snapdragon 8 Gen 4, which uses TSMC's 3nm process, will rise, and it is expected that it will also lead to an increase in the price of related terminal equipment.