TSMC Next-Gen Node Pricing May Push CPU and GPU Costs Higher
TSMC next-gen node pricing may drive a semiconductor price hike 2025, raising CPU GPU costs as chipmakers face soaring advanced process expenses.
The cost of making the most advanced processors is rising fast, and a new report suggests that the next step could make things even worse for consumers. According to China Times, TSMC next-gen node pricing for its N2 process could be more than 50% higher than its current N3 node. This means the TSMC CPU GPU costs for companies like Apple, Nvidia, and AMD may rise sharply, leading to a semiconductor price hike 2025.
TSMC already raised prices when it moved from N5 to N3, with an increase of around 20%. If the N2 jump really is 50%, chipmakers might end up paying about 80% more for wafers than just two generations ago. Since TSMC is the world’s leading foundry with little competition at the cutting edge, it has the freedom to set high prices.
Building advanced chips requires extremely expensive tools, such as ASML’s photolithography machines, which can cost hundreds of millions of dollars each. On top of this, TSMC invests billions every year in research, development, and new factories to create the latest TSMC advanced process node.
The big question now is whether Apple, Nvidia, and AMD will pass these costs on to customers. If they do, the rising cost of CPUs GPUs could mean a processor that sells for $300 today might cost nearly $400 in the near future. Alternatively, companies may try to design smaller chips to fit more on each wafer, reducing costs without a full price hike.
Mass production of N2 chips is expected in 2026, with AMD likely to bring the first consumer products. How much Ryzen processors, Radeon GPUs, or Nvidia graphics cards go up in price will give us the clearest picture of the true impact of this TSMC chip manufacturing news.
