A major price hike could be on the horizon for smartphones and tablets, as leading chipset designers including Apple, Qualcomm, and MediaTek reportedly prepare to pass on increased production costs to consumers. The cause: Taiwan Semiconductor Manufacturing Company’s (TSMC) steep pricing for its next-generation 2-nanometer (2nm) wafers.

Industry sources say TSMC began taking orders for its 2nm nodes earlier this month, with wafer costs estimated at a staggering $30,000 each. While it’s unclear if prices will fall as production scales, the current cost structure presents a dilemma for tech giants eager to remain at the forefront of silicon innovation.

With pressure mounting to adopt the most advanced chip designs, manufacturers may have little choice but to raise prices on devices powered by these new processors. This could lead to a wave of more expensive smartphones, tablets, and other consumer electronics in the near future.

2025 Devices Likely Safe—for Now

According to industry analyst Ming-Chi Kuo, Apple is expected to limit the rollout of its 2nm A-series chips to only its premium iPhone 18 Pro and iPhone 18 Pro Max models in 2025, citing high wafer costs. The rest of the iPhone lineup is anticipated to continue using TSMC’s more cost-effective third-generation 3nm process.

Similarly, Qualcomm and MediaTek are expected to rely on 3nm designs for much of 2025, thereby avoiding an immediate price jump. However, this reprieve may be short-lived.

Dual Sourcing and Strategic Adjustments in 2026

Looking ahead to 2026, Qualcomm is rumored to be developing two 2nm chipsets, including the high-performance Snapdragon 8 Elite Gen 3. Yet the San Diego-based firm is also reportedly exploring dual-sourcing strategies to mitigate reliance on TSMC, including the possibility of leveraging Samsung’s advanced fabrication nodes.

MediaTek, meanwhile, may attempt to carve out a larger market share by offering its upcoming 2nm Dimensity 9600 chipset at a more aggressive price point—potentially undercutting competitors who pass full production costs on to device makers.

Cost vs. Demand: Will TSMC Budge?

Despite the eye-watering price tag, demand for 2nm wafers is expected to outstrip that for 3nm, prompting speculation that TSMC may eventually reduce prices once economies of scale are realized. However, such a shift remains uncertain.

The tip comes via Chinese tech insider Digital Chat Station, who shared the developments on Weibo, suggesting that a wave of more expensive devices could hit the market unless manufacturers find alternative cost-saving measures.

For now, this remains a developing story. While the pricing rumors are unconfirmed, they highlight the escalating costs of staying competitive in the semiconductor race—and the inevitable impact on consumers’ wallets.

Stay tuned for further updates as this story evolves.