Wednesday, May 11th 2022
TSMC Said to be Planning Price Increases in 2023
The global inflation rises are no secret and more and more companies are looking to increase prices of their goods, so not entirely unsurprising, reports of TSMC planning price hikes in early 2023 are starting to appear. TSMC has supposedly already contacted its customers to notify them about the upcoming price increase, to give them as much time as possible to make any changes to their plans, if needed. The price increase will vary depending on the node in question, but is reported to be somewhere between five and eight percent according to the Nikkei.
Part of the increase is also related to TSMC's rapid expansion that's going on at the moment, since the company is going to need to invest a lot more capital when it comes to building the advanced fabs that its customers are relying on. TSMC is expected to invest some US$40-44 billion this year alone on fabs and new equipment. This is a fairly small price increase compared to the big increase TSMC implemented in August 2021, where some nodes saw price hikes of up to 20 percent. That said, TSMC isn't alone in increasing their pricing, as UMC and SMIC have also increased their prices several times since last year. Nikkei claims that UMC and SMIC are charging more than TSMC on some nodes. However, in the past, TSMC used to offer discounts to its clients on a quarterly basis once a chip had gone into mass production and everything progressed smoothly, but TSMC discontinued this discount scheme last year. As such, it looks like cheaper chip costs aren't to be expected any time soon.
Source:
The Nikkei
Part of the increase is also related to TSMC's rapid expansion that's going on at the moment, since the company is going to need to invest a lot more capital when it comes to building the advanced fabs that its customers are relying on. TSMC is expected to invest some US$40-44 billion this year alone on fabs and new equipment. This is a fairly small price increase compared to the big increase TSMC implemented in August 2021, where some nodes saw price hikes of up to 20 percent. That said, TSMC isn't alone in increasing their pricing, as UMC and SMIC have also increased their prices several times since last year. Nikkei claims that UMC and SMIC are charging more than TSMC on some nodes. However, in the past, TSMC used to offer discounts to its clients on a quarterly basis once a chip had gone into mass production and everything progressed smoothly, but TSMC discontinued this discount scheme last year. As such, it looks like cheaper chip costs aren't to be expected any time soon.
25 Comments on TSMC Said to be Planning Price Increases in 2023
I really hope somebody else can catch up with them and offer an affordable alternative one day soon.
One thing that stays the same are the salaries.... Fking Capitalism...
I dont like it but i can respect that.
"2023 was a record year with the highest ever recorded profit since this company was founded".
Such changes are always passed on to the consumer, not that it would hurt their profits if they didnt.
"We are planning on increasing prices to cover higher operating costs"
TSMC in 2025:
"2024 was a record year with the highest ever recorded profit since this company was founded".
Ece.
:p
Hopefully Samsung can step it up.Chuckle.
Take today, say you increased capacity by 50% and could meet current demands....Welp, EVs are slated to be forced upon us as our only option for cars, and they take 2-3x as many chips to make as a gas car. So right back to square 1. Everything else in our life needs more chips, and thanks to planned obsolescence they all need periodically replaced. The demand there will only grow as more peole demand "smart" appliances and "smart" homes that need constant upgrades.
That major upgrade in capacity would also need to be met with increased transportation to handle said supply, and that is only predicted to get worse.
Welcome to clown world.
Stop the political BS and hate.
In any case I am very well tired of these price increases as I am sure everyone else is.