Qualcomm and MediaTek face higher TSMC 3nm N3P costs, with pricier flagships likely

Major mobile chipmakers Qualcomm and MediaTek are facing a sharp rise in costs. China Times reports the companies paid TSMC up to 24% more to manufacture their new flagship Snapdragon 8 Elite Gen 5 and Dimensity 9500 chips. The reason is pricier 3 nm N3P wafers: they deliver up to a 5% performance boost and 5–10% better power efficiency, but come in noticeably more expensive than previous options.

According to the outlet, Qualcomm’s bill increased by roughly 16%, while MediaTek’s climbed by the full 24%. The new processors are only now hitting the market: the Dimensity 9500 has been officially unveiled, and the Snapdragon 8 Elite Gen 5 is expected in the coming hours. It is also noted that N3P wafers cost around 20% more than the earlier 3 nm N3E node.

Even steeper spending looms ahead. Moving to the 2 nm process could cost manufacturers about 50% more. And despite paying extra, Qualcomm and MediaTek may still run into supply constraints, as more than half of TSMC’s 2 nm capacity is already allocated to Apple for its own chips. In other words, scarcity could bite just as prices climb.

Experts indicate the higher production costs will likely be passed on to consumers. Smartphone makers are expected to bake the pricier silicon into device pricing, which could push flagship prices up as soon as the next generation. Performance is inching forward, but affordability doesn’t appear to be following suit.