TSMC May Raise Chip Prices
- TSMC may raise chip prices due to inflation
- Global chip shortages affecting Apple, Nvidia, and AMD
- TSMC's CFO says inflation is raising costs
- CEO says AI chip shortages will last years
- Previous price hike was up to 20% in January 2022
TSMC, the world's largest chipmaker, has not ruled out price increases due to rising costs. Officials said inflation is pushing up the cost of doing business. The company makes the most advanced chips designed by companies such as Nvidia, AMD, and Apple.
- TSMC's previous price hike was up to 20% in January 2022.
- The company's services fee increase is its most significant cost hike in 10 years.
Para 3. Meanwhile, sources confirmed that TSMC's chairman, Wendell Huang, told shareholders he would like to raise prices as AI demand outstrips supply.
Impact on Electronics Market
Para. According to experts, TSMC's price increase could ripple through to the cost of AI infrastructure, and potentially over time, the prices customers pay for their electronic devices. Wendell Huang, TSMC's chairman, said, 'We would like to raise prices, but we won't impose sudden dramatic increases.' Para. Data shows that the global chip shortage is driving up costs, with memory products being the strongest driver behind the price increase.
Chipmaker's Previous Price Hikes
Para. In January 2022, TSMC raised its prices by up to 20%. This was the company's most significant cost hike in 10 years. Experts said the price increase was due to rising materials expenses and the global chip shortage. Para. TSMC's clients, including Apple, Advanced Micro Devices (AMD), Nvidia, Qualcomm, and other major integrated circuit design houses, will be affected by the price hike.
Global Chip Shortage
Para. The global chip shortage is affecting not only TSMC but also other chipmakers, such as China's SMIC. SMIC recently raised its wafer prices by about 10% due to tightening capacity. Para. The immediate impact of the price increase will be felt most acutely by Chinese chip designers and memory producers that rely on SMIC's capacity. Historical fact: The global chip shortage has been ongoing for several years, with no end in sight.
Human Impact of Price Hike
Para. The price hike could affect consumers who rely on electronic devices, such as smartphones and laptops. Para. Witnesses said the price increase could lead to higher prices for these devices, making them less affordable for some consumers. Para. Meanwhile, government sources said the price hike could have a significant impact on the economy, particularly in industries that rely heavily on electronic devices.