Taiwan Semiconductor Manufacturing (TSMC), one of the world’s leading chip manufacturers, is reportedly planning a price increase for both high-tech and mature chips. Taiwan’s DigiTimes on Wednesday reported that TSMC will increase its ex-factory prices by 10 to 20 percent from 2022.
TSMC plans to increase by 20 percent using nodes 16 nanometers and thicker prices of processed mature technology chips. Prices for state-of-the-art chips made with circuits smaller than 16 nanometers will rise by about 10 percent – according to the paper. (Chips are measured in circuit width in nanometers, which is one billionth of a meter.)
TSMC raises its prices to improve its gross profit margin, according to Tom’s Hardware technology news site. The move will increase the cost of chips, including CPUs, graphics processors, microcontrollers, and system-on-a-chip devices. TSMC chips are manufactured by a number of non-factory semiconductor companies, including AMD, Apple, Nvidia and Qualcomm. Focus Taiwan
“We believe that TSMC will push for price increases due to recent margin problems in the midst of global chip shortages and will not experience strong resistance from its customers as they are already experiencing higher prices elsewhere” – wrote Charles Shi, Needham analyst in a note to customers
Piper Sandler analyst Harsh Kumar informed customers: “Although individual companies, products and end markets may be different, we feel that demand and supply are currently expected to be broadly in balance in mid-2022. At this point, with an inventory adjustment, a macro-level decline or even just a return to normal seasonal growth concerns could bring the industry to a turning point. ” According to Kumar, semiconductor industry trends look positive until early next year. However, the outlook for the second half of the year is “slightly blurred”.
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