June 17, 2024 /SemiMedia/ -- According to the supply chain, TSMC plans to increase its 3nm foundry price by more than 5%, and the annual quotation for advanced packaging will also increase by about 10% to 20% next year.

Industry insiders said that TSMC's 3nm production capacity has been booked by four major customers including Apple and Nvidia. The production capacity is already in short supply, and it is expected that the capacity will be fully booked until 2026.

TSMC also revealed that 3nm orders are strong in the second half of the year, and capacity utilization is close to full and will continue until 2025. 5nm is also in a similar situation driven by AI demand. Therefore, the prices of advanced process nodes such as 3nm and 5nm may be adjusted.

Industry insiders pointed out that the price increase is reasonable because the cost of each 3nm wafer is about 25% more expensive than that of 5nm, and this increase has not yet taken into account factors such as the overall wafer count and design architecture.

In addition, more powerful computing data centers are continuing to drive up demand for AI accelerator hardware, and CoWoS advanced packaging production capacity is still in short supply.

TSMC stated that the market demand is estimated to exceed 600,000 pieces next year, and TSMC's supply is estimated to be 530,000 pieces next year, which means there is still a gap of about 70,000 pieces. The price of advanced packaging is about to increase.