2026 is going to be an interesting year for smartphones. Normally we don’t get too excited when it comes to the phone’s chipsets. Obviously, it’s a key component, but most of the time we can expect the usual performance and efficiency upgrades. However, 2026 will usher in a new era of chips, most of which will be built on the 2nm process. It is also when TSMC is expected to make bank, because the rumors claim its 2nm chips will see a 50% increase in price.
TSMC 2nm chips to increase in price
According to a report by China Times, TSMC is expected to raise the price of its 2nm chips. By how much, you ask? By a whopping 50%. This means on paper, whatever companies are paying TSMC now can expect to pay 50% more if they want to take advantage of the 2nm process.
However, take this report with a grain of salt for now. Typically speaking, companies don’t disclose how much are its production costs. Plus, we also have to factor in discounts. For example, a company such as Apple who places millions of orders will most likely be able to get a better price than a smaller company. Plus, TSMC might be incentivized to give its larger customers steeper discounts to keep them coming back.
It remains to be seen whether this rumored price hike could lead to more expensive phones next year. Apple is said to be one of the earlier adopters of TSMC’s 2nm technology. The 2026 A20 series chipset is rumored to be built using the process.
But what’s the big deal?
For the most part, TSMC’s chipsets can be found in mobile devices like our smartphones. However, as the processes become more advanced, it opens the door to more possibilities for the technology. For instance, instead of merely creating SoCs, TSMC’s 2nm process can be used in HPC technologies. It is also why companies like NVIDIA and AMD are eager to get their hands on chips made using the 2nm process.
Also, the 2nm process means that more transistors can be fit on a single chip. This means that a 2nm chip would be, on paper, more powerful than a 7nm one. Also, since the distance between transistors has been made a lot shorter, 2nm chips have the added advantage of being more energy efficient.
Seeing as how companies like NVIDIA are building chips for AI, it’s not hard to see how a more energy chip could be useful there.