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

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.

In recent months, the prices of computers and various parts have already risen sharply due to shortages in the supply of semiconductor components. The announcement from TSMC is now one step further. Since basically all hardware manufacturers use components that come from the plants of the OEM group, there is probably little escape for the buyer of electronics. Especially since there is hardly any competition that could produce on a scale like TSMC.

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.