The world’s largest semiconductor manufacturer, TSMC, plans to raise prices by 20%, the most significant change in the Taiwanese company’s pricing policy. She has already notified her clients about this. According to the Liberty Times and other media outlets, the price increases and the effective date for the new tariffs vary from customer to customer. For some companies, new rates have already begun to operate.
From last fall to this spring, TSMC and other semiconductor manufacturers have raised prices by more than 10%. But as strong demand continues to outstrip supply, TSMC has decided to raise prices again. The company attributes such a decision to the costs of ramping up production, and this is likely to affect the cost of final products, including microcontrollers, systems on a chip (SoC), graphics chips and so on.
Fears about lower profitability are another reason for the rise in prices. Earlier, the company announced that it intends to invest $ 100 billion in production within three years. Such a commitment is fueling fears of a potential drop in profits. Especially considering the fact that TSMC is preparing to expand its overseas expansion – the company is building a state-of-the-art semiconductor factory in the US state of Arizona and is considering opening its first chip factory in Japan. Today TSMC holds 56% of the world semiconductor market. The company’s closest competitors did not even come close to such a result.
By the way, TSMC is not the only manufacturer that raises prices for its products. Other companies are forced to do this too.
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