TSMC Price Hike

Issue 86

It may seem that the global chip shortage is coming to a close as companies across the world have begun manufacturing at somewhat normal speeds as well as the United States expanding its manufacturing capabilities. However, as chip manufacturers return to normal, companies like Taiwan Semiconductor Manufacturing Co. have decided to increase prices on nearly all of their semiconductors.

TSMC plans to increase the prices of their most advanced chips by 10% and their less advanced chips by 20% by the end of this year. This will have great effects on consumers as these chips are used for computers, smartphones, and motor vehicles. One of the largest customers of TSMC is Apple and they use advanced chips to manufacture their iPhones. Other companies that rely heavily on TSMC include General Motors Co. and Toyota Motors Corp. all of which will feel the effects of the semiconductor price increases.

While these price increases won't immediately affect consumers, however, unless large corporations are prepared to absorb the growing manufacturing costs of utilizing semiconductors, consumers will likely see an increase in prices coming next year.

Source: Wall Street Journal