TSMC will raise the price of its products, but less than expected

Despite declining consumer demand for chips due to inflation, there are factors that may push up component prices, and overall chip demand remains strong. For them the manufacturer TSMC plans to increase chip production prices once again from 2023.

The price increase will not be what was expected compared to the price increase we are experiencing, but it will still be quite noticeable for companies like AMD, Nvidia and Intel. this very It will surely imply an increase in prices. in all its products.

There will be higher prices for computer products next yearº

The world's largest semiconductor maker plans to raise prices for most of its manufacturing processes by 6% from January 2023. Already last year they increased the prices of chips made with their N7 and N5 process technologies by 10%, while the prices of older N16 and thicker nodes grew by 20%. Earlier this year, chip prices were expected to increase by up to 9% from 2023, so while they will rise markedly, it won't be as big of an increase as expected.

TSMC and other foundries based in Taiwán they expect their income to peak this year. Its utilization rate is currently around 95% and is not expected to drop, because contract chipmakers continue to make long-term order commitments.

intel core i3 tsmc processor

TSMC and other smelters have had to raise their listings as they are expanding production capacities to meet long-term demand. As the supply of manufacturing equipment is limited, the lead times have been extended to 30 months and will not be reduced. That is why the costs of expanding production have risen, and that will affect prices.

There is also the higher price of electricity, raw materials and labor, which are affecting the profit margins of all those involved in the assembly line. With which, at least the products made from next year, dependent on the foundries of TSMC, will see their prices increased. Companies like Samsung and Intel want to have their own foundries would also be affected by the price increase, but by its own factors.

Source: Tom's Hardware

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Benjamin Rosa

Madrileño whose publishing career began in 2009. I love investigating curiosities that I later bring to you, readers, in articles. I studied photography, a skill that I use to create humorous photomontages.

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