TSMC raises chip production prices, Samsung follows suit. Expect tech price hikes

By: Elena Shcherban | 27.08.2021, 19:26
TSMC raises chip production prices, Samsung follows suit. Expect tech price hikes

The world's largest chip supplier TSMC (Taiwan Semiconductor Manufacturing Company) announced significant price increase for semiconductor production.

How serious is it?

So, advanced processors (7nm and below) will increase in price by 10%. For example, their used by AMD for Ryzen and EPYC processors, Qualcomm for Snapdragon chips and Apple for Silicon in iPhone, iPad and Mac. At  the same time, 16nm and thicker and at all will increase in price by 20%. As a result the cost per wafer with 28nm chips will be as much as 3 thousand dollars.

Considering that TSMC services are used by 56% of the world semiconductor market, it is obvious that mobile SoC, microcontrollers, graphics processors , etc. will become more expensive., and together with them - ready-made gadgets. So, analysts predict that because of this Apple will raise the prices of the new line of iPhone 13 smartphones.

The tariffs will take effect from December 2021.

Who else?

Samsung Electronics is expected to raise prices following TSMC. According to the report, the companies are raising prices due to significant demand, which reduces profitability as a large amount of investment is required to expand existing production capacity. "Samsung's production line is so full that it has outsourced production of some processors for the Galaxy", - noted analysts.

In addition, other Taiwanese companies intend to raise prices for their products - PSMC and UMC, U.S. GlobalFoundries, as well as Chinese SMIC.

Source: Nikkei, KedGlobal