TSMC's average wafer prices increased by over 15% each year since 2019, report suggests — gross profit margins increase by 3.3x in 2025 alone, facing no real challengers

TSMC's wafer prices have surged by 15.9% annually since 2019, leading to a 3.3x increase in gross profit margins in 2025. The company's market dominance and utilization of extreme ultraviolet (EUV) chipmaking technology have contributed to this growth. TSMC's strategic partnerships and investments in R&D have solidified its position as a leader in the semiconductor industry, with no significant challengers in sight. The shift in pricing strategy towards customer value rather than manufacturing costs has further strengthened TSMC's competitive advantage, making it difficult for new entrants to compete.