TSMC is poised to initiate mass production of its N2 2nm process by the end of this year. Industry analysts predict that the pricing for this advanced process will be 10–20% higher than that of the current 3nm process, with a single wafer estimated to cost around $30,000. Given the tight supply of advanced process manufacturing capacity, TSMC has informed its customers that starting from January 2026, prices for processes below 5nm (inclusive of 5nm, 4nm, 3nm, and 2nm) will undergo annual increases for four consecutive years. The average price hike will be 3–5%, calculated on a 'compound interest' basis. Among these, while the 3nm process will see yearly price increases in the single-digit percentage range, the cumulative increase over the four-year period will surpass 10%. The primary drivers behind these price increases are the soaring demand for AI and HPC (High-Performance Computing) chips. Major customers, including Qualcomm, MediaTek, Apple, NVIDIA, and AMD, are eagerly awaiting the mass production of the 2nm process. In response to market trends, TSMC has reallocated its resources towards advanced processes at 5nm and below, resulting in a decrease in capacity for 7nm and 6nm processes. In the third quarter of 2025, advanced processes contributed to 74% of TSMC’s total revenue, and it is anticipated that this share will exceed 75% following the commencement of mass production for the 2nm process.