Ekhbary News Agency | 2024-06-18
The global technology sector faces an imminent wave of price increases following recent reports indicating TSMC, the world's largest contract chipmaker, intends to raise manufacturing costs across most of its advanced technologies. This move, communicated to clients recently, is poised to escalate production expenses for major global tech firms, to be sure.
Anticipated Hikes and Industry Impact
Expected price adjustments range from 5% to 10%, extending beyond the 3-nanometer process to encompass widely utilized advanced nodes like 5nm and 7nm. These technologies, collectively generating approximately 74% of TSMC's chip manufacturing revenue, form the backbone of products from giants such as Apple, Nvidia, AMD, and Qualcomm. Consequently, consumer electronics, spanning smartphones to graphics cards, could experience upward price pressures in the foreseeable future.
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Market Pressures and TSMC's Stance
The decision emerges amid a confluence of industry challenges, notably rising manufacturing costs, global inflation, and TSMC's ongoing expansion into new fabrication plants outside Taiwan, coupled with an unprecedented surge in demand for AI chips. While TSMC has refrained from directly commenting on specific pricing, the company affirmed its new pricing strategy as "strategic, not opportunistic." The CEO previously stated that demand for advanced chips continues to significantly outstrip current production capacity, underscoring the necessity of these adjustments.
