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TSMC has declared that it has no immediate plans to build fabrication plants in the Middle East, reinforcing its strategy to focus on regions where customer demand is strong. Last week's rumors that TSMC might establish a gigafab in the United Arab Emirates have been dismissed by company executives as baseless. CEO CC Wei explained that an expansion into the Gulf does not fit with TSMC's model of locating factories near its largest clients. With ongoing investments in the US, Japan, and Germany, the company aims to serve technology leaders and automotive manufacturers more effectively. Wei added that, without a solid local customer base, building in the Middle East would be impractical. At the same time, TSMC indicated it is reviewing wafer pricing. Fluctuations in the Taiwanese dollar and changing global tariffs were cited as factors under consideration.
According to Wei, long-term agreements could include modest price increases, especially for advanced process nodes, where research and development costs and manufacturing challenges are rising. Looking ahead, TSMC confirmed that the upcoming A14 1.4 nm node wafers are expected to be priced around $45,000 each. This would represent a 50 percent increase over the current 2 nm wafers, which cost about $30,000 apiece. Production of the 1.4 nm node is projected to begin around 2028. Only TSMC's top-tier customers are likely to reserve capacity for this cutting-edge node in its early stages. As demand for advanced semiconductors rises, the company's approach to pricing and geographic focus will be key to maintaining its leadership in the global foundry market.
View at TechPowerUp Main Site | Source
According to Wei, long-term agreements could include modest price increases, especially for advanced process nodes, where research and development costs and manufacturing challenges are rising. Looking ahead, TSMC confirmed that the upcoming A14 1.4 nm node wafers are expected to be priced around $45,000 each. This would represent a 50 percent increase over the current 2 nm wafers, which cost about $30,000 apiece. Production of the 1.4 nm node is projected to begin around 2028. Only TSMC's top-tier customers are likely to reserve capacity for this cutting-edge node in its early stages. As demand for advanced semiconductors rises, the company's approach to pricing and geographic focus will be key to maintaining its leadership in the global foundry market.
View at TechPowerUp Main Site | Source
