TSMC hits Qualcomm and MediaTek with up to 24% price increase for N3P node according to new report

With the launch of the A19 and the A19 Pro SoCs, Apple showed an impressive gen-on-gen performance improvement, especially in the GPU department. Not to be left behind, Android SoC makers Qualcomm and MediaTek are also set to reveal their flagship SoCs, the Snapdragon 8 Elite Gen 5 and the Dimensity 9500. 

If the performance leaks are correct, the Apple A19 Pro could have a tough fight on its hands as both the Dimensity 9500 and the Snapdragon 8 Elite Gen 5 appear to be beastly performers. However, there is one area where Apple seems to have a distinct advantage: Price.

According to a new China Times report, TSMC’s latest N3P “3 nm” process node has suffered a 20% price increase over the last generation. Owing to this price increase, TSMC is reportedly charging MediaTek 24% more for the N3P than last-gen, while Qualcomm is paying 16% more. 

The report doesn’t mention Apple, which leads us to believe that either TSMC is not overcharging Apple or Cupertino has managed to get a discount on the price increase and pays much less than MediaTek and Qualcomm. Apple is reportedly TSMC’s biggest customer and, per Taiwanese sources, is expected to contribute 22-25% to TSMC’s total revenue for 2026. As such, it makes sense that TSMC allegedly gives Apple a better deal than other chipmakers.

Moreover, TSMC is also reportedly increasing the price of the 2 nm process node by “at least” 50% due to large R&D costs and the yield. This will directly impact flagship smartphone SoCs next year, as the unit cost is expected to reach as high as $280. TSMC is also reportedly offering no “discount or bargaining strategy”.

Potentially big smartphone price bumps are on the horizon

Smartphone makers like Vivo, Xiaomi, and Oppo are set to introduce their next crop of flagship phones. Powered by a mix of Qualcomm Snapdragon 8 Elite Gen 5 and the MediaTek Dimensity 9500, these upcoming Chinese flagships could be priced higher than last-gen.

The same could happen to the Galaxy S26 series, which is expected to use both the Exynos 2600 and the Snapdragon 8 Elite Gen 5 next year.

Finally, if TSMC’s purported 50% price increase for the 2 nm process node is anywhere close to being real, flagships launching in the second half of 2026, like the Apple iPhone 18, will clearly demand an egregious price premium over last-gen counterparts. So, if you are due for an upgrade, now might be a good time to think about one, since you can find currently Android flagships on good discounts.