TSMC hikes chip prices up to 20% amid supply shortage

Nikkei Asia is reporting that contract chipmaking giant Taiwan Semiconductor Manufacturing Co. told clients Wednesday that it plans to raise prices on products by as much as 20%, in what would be the company’s steepest single increase.

The price increases and the time frames for the hikes differ depending on the client, according to reports by Taiwan’s Liberty Times newspaper and other media outlets. For some companies that received TSMC’s notice, the hikes took effect immediately.

TSMC and other Taiwanese semiconductor companies raised chip prices by more than 10% between last fall and this spring. But with strong demand continuing to outstrip supply, TSMC decided to sharply increase prices again.

The increased costs tied to ramping up production are being passed downstream, with the company enjoying better bargaining power amid the global chip crunch as well.

This move likely will impact the sticker prices of end products. A TSMC spokesperson declined to comment to Nikkei about the higher chip prices.

Concerns over lower profitability are another reason behind the price hikes. The company has said it will make $100 billion in capital investments over three years through 2023. That commitment has fueled qualms about a potential decline in profits as TSMC prepares to boost its overseas expansion.

Read more in the article here.

Other posts on the shortages:


Have an amazing project to share? The Electronics Show and Tell is every Wednesday at 7:30pm ET! To join, head over to YouTube and check out the show’s live chat and our Discord!

Join us every Wednesday night at 8pm ET for Ask an Engineer!

Join over 38,000+ makers on Adafruit’s Discord channels and be part of the community! http://adafru.it/discord

CircuitPython – The easiest way to program microcontrollers – CircuitPython.org


New Products – Adafruit Industries – Makers, hackers, artists, designers and engineers! — New Products 11/15/2024 Featuring Adafruit bq25185 USB / DC / Solar Charger with 3.3V Buck Board! (Video)

Python for Microcontrollers – Adafruit Daily — Python on Microcontrollers Newsletter: A New Arduino MicroPython Package Manager, How-Tos and Much More! #CircuitPython #Python #micropython @ThePSF @Raspberry_Pi

EYE on NPI – Adafruit Daily — EYE on NPI Maxim’s Himalaya uSLIC Step-Down Power Module #EyeOnNPI @maximintegrated @digikey

Adafruit IoT Monthly — The 2024 Recap Issue!

Maker Business – Adafruit Daily — Apple to build another chip at TSMC Arizona

Electronics – Adafruit Daily — SMT Tip – Stop moving around!

Get the only spam-free daily newsletter about wearables, running a "maker business", electronic tips and more! Subscribe at AdafruitDaily.com !


No Comments

No comments yet.

Sorry, the comment form is closed at this time.