Smartphone prices are set to rise as TSMC, the world’s largest chipmaker, increases production costs. Apple’s iPhone 17 and Samsung’s Galaxy S26 could see significant price hikes.

Rising Costs for Smartphones


Consumers could soon be paying more for their next smartphone, as the world’s largest semiconductor manufacturer, TSMC (Taiwan Semiconductor Manufacturing Company), plans further price increases in chip production.

This year, the company already raised costs, but reports suggest that another 5-10% hike is expected next year. The rise comes as TSMC faces mounting pressure from US tariffs, market fluctuations, and global economic factors, all of which are driving up production expenses.

Phones Will Become Even More Expensive Due to TSMC’s Dominance


TSMC’s chips power some of the world’s most popular devices, including Apple’s iPhones and Samsung’s Galaxy series. Both tech giants rely heavily on TSMC’s advanced semiconductor manufacturing and are unlikely to switch suppliers in the near future.

With both Apple and Samsung locked into their supply agreements, any increase in chip production costs is expected to be passed directly onto consumers. This means smartphones across both brands will almost certainly become more expensive in the months ahead.

iPhone 17 and Galaxy S26 Facing Price Hikes


The upcoming iPhone 17 series, set to be revealed on 9 September, will feature Apple’s new A19 chips, manufactured at TSMC facilities. Meanwhile, Samsung’s highly anticipated Galaxy S26 series, expected next year, will most likely be powered by Qualcomm’s Snapdragon 8 Elite Gen 2—or potentially the 8 Elite Gen 5—also produced by TSMC.

Industry insiders believe the iPhone 17 Pro and iPhone 17 Pro Max models are the most likely to see immediate price increases. Current estimates suggest an additional $50 could be added to the retail price, making Apple’s flagship devices even more costly than before.

Why Phones Will Become More Expensive for Everyone


The reliance on TSMC highlights a critical issue in the smartphone industry: the lack of alternatives for advanced chip manufacturing. As TSMC continues to dominate the market, its pricing decisions directly affect billions of consumers worldwide.

Market analysts argue that unless rival semiconductor producers can match TSMC’s technological edge, global smartphone prices will remain closely tied to its production costs.

A Costly Future for Smartphones


The expected rise in chip prices makes it almost certain that phones will become even more expensive in the near future. With Apple and Samsung both dependent on TSMC for their latest processors, consumers are bracing for higher costs on flagship models like the iPhone 17 and Galaxy S26.

As the smartphone market prepares for these changes, one thing is clear: the price of innovation is rising, and consumers will soon be paying the difference.