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TSMC plans to raise prices for its most advanced products
Semiconductor contract maker Taiwan Semiconductor Manufacturing Co Ltd (TSMC) warns of possible price hikes on difficult-to-manufacture chips caused by higher costs and lower profit margins.
As a reminder, TSMC is the oldest and largest player in the industry, three times the sales volume of its closest competitor, United Microelectronics Corp (UMC).
Price increases associated with inflation and rising world prices. Most likely, the increase will affect products manufactured using the most advanced technologies. When exactly the increase will take place and what its size will be, the company has not yet said.
As you know, TSMC produces microcircuits by orders of companies such as AMD and NVIDIA. Moreover, according to unconfirmed reports, AMD plans to completely transfer the production of its processors into the hands of contract manufacturers (TSMC and Chartered Semiconductor, already producing products for AMD). TSMC’s production base allows the production of chips according to 40 nm standards.
Probably, TSMC needed funds for the construction of new facilities designed for processing 450-mm plates. Some time ago, the largest manufacturers – Intel, Samsung and TSMC – reached a corresponding agreement providing for the transition to new substrates. According to experts, the cost of the 450-mm factory exceeds 10 billion. Doll., which is about three times more than the cost of a modern factory working with 300 mm plates.