TSMC Price Hikes End the Era of Cheap Transistors
By Pablo Valerio, EETimes (October 1, 2025)
The global semiconductor industry is undergoing a profound economic transformation, one anchored by Taiwan Semiconductor Manufacturing Company (TSMC) that spells the end of an era defined by predictably declining costs of transistors.
At the center of this structural shift is TSMC’s decision to implement unprecedented price hikes for its most advanced logic chips, a move necessitated by astronomical capital expenditures, geopolitical mandates, and the sheer, unyielding physics of manufacturing at the angstrom scale.
TSMC, the world’s undisputed leader in advanced logic manufacturing and the holder of a commanding 70.2% share of all foundry revenue as of the second quarter of 2025, is leveraging its technological supremacy to fund the next generation of innovation. This strategy permanently raises the cost basis for the foundational components of the entire digital economy.
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