Everything with chips in it is getting more expensive: TSMC raises prices by up to 20%

Everything with chips in it is getting more expensive: TSMC raises prices by up to 20%

Smartphone SoC Hub Hero
© Qualcomm

Consumers must be prepared to pay significantly more for electronic products in the near future. Because TSMC, as the world’s largest contract manufacturer, wants to increase its prices by up to 20 percent.

That’s especially true since the highest price increase of 20 percent applies to the simpler components – that is, the numerous controllers, sensors, SoCs  and other components that are found in large numbers in all electronic systems. On the other hand, those customers who have their high-end chips manufactured by TSMC, including Apple , AMD, Nvidia and Qualcomm, get a premium of 10 percent, as the Japanese business newspaper Nikkei reports .

Several reasons for price increase

TSMC justifies the announcement of higher prices with several factors. The group also has to deal with increased purchase prices for various raw materials. In addition, however, there is a rapidly increasing demand beyond short-term effects, since more and more industrially manufactured products are equipped with increasingly complex electronic components.

As a result, TSMC has to set up new production facilities worldwide. And these require gigantic investments. Investment costs in the tens of billions quickly add up, especially for larger plants that are equipped with modern EUV process lines. The new plant in the US state of Arizona alone will cost $12 billion, and TSMC plans to invest $100 billion worldwide by 2023.

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