TSMC’s most advanced manufacturing node is effectively spoken for years in advance. The Taiwanese chipmaker has already sold out its entire 2-nanometer capacity — covering N2 chips — through 2026, a sign that demand from smartphone and data-center clients continues to outstrip supply. To keep pace, the company is simultaneously ramping up five fabrication plants, with volume production of the enhanced N2P variant slated for the second half of next year.
That technological shift from FinFET to nanosheet architecture promises meaningful gains in performance and energy efficiency, and it further cements TSMC’s grip on the high-end foundry market. But the price of that leadership may be going up. According to reports from July 3 and 4, the company is mulling price increases of 5 percent to 10 percent on its most advanced processes — those behind chips for AI data centers, smartphones, and PCs. The increases have not been officially confirmed, and the exact magnitude is expected to vary by client, node, and product category, but inflation and rising fabrication costs are widely cited as the trigger.
The market has already priced in the upside. TSMC shares closed Friday at €396.00, up 4.21 percent on the day and 4.21 percent for the week. That leaves the stock just 5.83 percent shy of its 52-week high of €420.50, set on July 1. On a year-to-date basis, the equity has surged 45.05 percent, and over the past twelve months it has nearly doubled with a gain of 97.51 percent. Annualized volatility over the last 30 days stands at 55.23 percent, underscoring how sensitive investors have become to any news flow from the company.
Should investors sell immediately? Or is it worth buying TSMC?
Tech indicators suggest the rally still has room to run. The 14-day relative strength index sits at 55.2 — comfortably below the overbought threshold of 70. The share price is 9.05 percent above its 50-day moving average of €363.12 and a hefty 36.70 percent above the 200-day line of €289.70. Chart watchers see no immediate exhaustion signals.
TSMC’s pricing power is anchored not only in its technological lead but also in the sheer scale of its capacity. AI and high-performance computing processors already accounted for 22 percent to 25 percent of revenue in 2025, and any price hike in that segment would flow directly to margins. The broader semi sector is feeling supply tightness as well: more than 20 major chipmakers have announced a second round of price increases this year, with markups on some components ranging from 10 percent to 25 percent. For TSMC, that environment only strengthens its hand.
On the revenue front, near-term expectations are elevated. TSMC reported combined April and May revenue of 827.7 billion Taiwan dollars, and analysts estimate June alone could bring in roughly 440 billion Taiwan dollars. That would push second-quarter revenue above the company’s own guidance range of $39 billion to $40.2 billion. The formal quarterly report is due later this month and will offer the clearest picture yet of whether those expectations — and the rumored price increases — are on track to become reality.
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