TSMC to increase chip production prices by 10 to 20 percent
TSMC, the world's largest chipmaker, is increasing manufacturing costs by 10% to 20%. That is what several Asian news outlets and the Wall Street Journal have reported.
Digital Times reports that the cost of manufacturing on TSMC's 7nm node and lower nodes will increase by 10%. The Taiwanese publication relies on insider information from the industry. A 16nm process or larger would result in a 20 percent increase in the cost of chips manufactured by TSMC. The Nikkei Asia newspaper also reports on the price increases, while the Wall Street Journal, citing its own sources, indicates the same percentage increases. The story has not received a response from TSMC.
The majority of the price increases would go into effect the following year. According to reports, TSMC is raising prices since the demand for chip fabrication is still quite high. In the meanwhile, it is still unclear whether greater manufacturing costs would be passed directly on to consumers. The price of a console is not directly related to the cost of materials. Apple, one of TSMC's top clients, has a significant profit margin on its devices, which means that the price rise does not have to be passed on to customers right once. Individual components such as processors or video cards, for example, may behave in a different way.
The vast majority of TSMC's revenue comes from the manufacture of tiny components. Nodes N5 and N7 generated 49 percent of the company's revenue in the quarter under consideration. Twenty-five percent of the total turnover was accounted for by processes N16 and N28. According to DigiTimes, some chip manufacturers have raised their pricing in recent months as a result of the high demand that has continued to exist. In addition to TSMC, GlobalFoundries, PSMC, SMIC, and UMC are among the companies involved.
Increased prices would take effect the next year.
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That's nothing. Wait for that 100-200% price increase once China invades Taiwan.
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Expected. Rich people will get richer, that's the way of the world.
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Oh Poop. Well there goes my optimistic view of prices coming down due to more production and manufacturing.








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This is happening because there isn't more production and manufacturing available for the time being. Has TSMC poured the concrete yet in the USA for its new plant? Back in Taiwan a crook apparently stole building materials from a plant expansion building site. I doubt that delayed it much, but, nevertheless, it's nothing but a building site. The prices will only, potentially, drop when all these places are in full production, but not before. I believe Samsung is also expanding, if memory serves.
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At this point is just monopoly, and they know that they are protected by the entire world so they can raise they price how they will. In case of WW3, TSMC would be on the priority list to destroy anyways, so they can milk since GF, the Chinese fab and etc are barely at 14nm, meanwhile only Samsung is close FOR NOW.