Rising production costs and potential US tariffs are the primary factors behind the prediction.
Previously, analysts expected wafer prices to rise by five to 10 percent in 2025.
The new forecast indicates that incoming tariffs may accelerate the increasing costs and blunted performance gains of recent products.
Taiwan’s silicon giant is expected to raise prices for smaller nodes starting at 7nm.
That relatively mature but still advanced node costs around $10,000 per wafer.
Apple, TSMC’s most privileged customer, currentlypays$18,000 per 3nm wafter.
Depending on the buyer, tariffs could increase 3nm prices to roughly $20,000 to $23,000 per wafer.
More expensive waferscomparedto offerings from the previous decade have already resulted in pricier devices with less impressive performance improvements.
Analyzingspecs across historical GPU lineups reveals a solid case for blaming the lukewarm performance uplifts on Nvidia’s greed.
Chinese companies still assemble crucial components and provide rare-earth metals for many modern electronics.
The President believes the tariffs will convince foreign companies to build manufacturing plants in the US.
However, these semiconductors will lag behind the most advanced nodes produced in Taiwan.
Recent rumors suggest that TSMC willconstructa 1nm Giga-Fab in Tainan City, Taiwan.
