Following Apple’s launch of the iPhone 17 series， MediaTek has unveiled the Dimensity 9500 today. Qualcomm is also set to release its fifth-generation Snapdragon 8 Gen 5， also known as Snapdragon 8 Elite Gen 5， soon. This brings together the flagship processors from both Apple and the Android camp. While their architectures differ， all three utilize TSMC’s N3P process. N3P represents the third generation of TSMC’s 3nm technology， with “P” denoting a performance-enhanced version.
Regrettably， TSMC’s N3P foundry pricing has seen an increase. Supply chain sources indicate a price hike ranging from 16% to 24%， with an average increase of approximately 20%. This signifies a substantial rise in the chip costs for new flagship smartphones.
While Apple did not increase the price of the standard iPhone 17 models， the iPhone 17 Pro series saw a $100 price hike， equivalent to a 1000 yuan increase in China. Similarly， upcoming domestic Android flagships， such as the expected Xiaomi 17， OPPO Find X9， and Vivo X300 series， are also anticipated to experience price increases to some extent.
Unfortunately， this rise in TSMC’s foundry chip pricing is just the beginning. The 2nm process is slated for mass production next year， and processors like Apple’s A20， Dimensity 9600， and Snapdragon 8E6 will adopt this new technology. However， this generation is expected to see a more significant price increase， with quotes potentially jumping from the current $20，000 for 3nm to the $30，000 range， marking a 50% surge.
Furthermore， the prices of memory and flash storage have also been rising rapidly. Major manufacturers have reported increases ranging from 10% to 30%， and this trend is expected to continue at least through the second quarter of next year. Consequently， the entry-level models of Android phones next year might start at 4999 yuan or even 5499 yuan， reflecting the cumulative impact of these component cost increases.
