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Global chip price hike: TSMC is raising chip prices by up to 20%

Consumers have to be prepared for the fact that they will soon have to pay significantly more for electronic products. Because the world’s largest contract manufacturer TSMC is raising chip prices by up to 20 percent.

In the last few months, the prices of computers and various individual parts have risen sharply due to the bottlenecks in deliveries of semiconductor components. The TSMC announcement goes one step further. Since basically, all hardware manufacturers use components that come from the factories of the OEM group, there is hardly any escape for the buyer of electronics. Especially since there is hardly any competition that could manufacture on a scale like TSMC.

This is especially true since the chip price hike by 20 percent applies to the simpler components – that is, to the numerous controllers, sensors, SoCs, and other components that are found in large numbers in all electronic systems. Those customers who, on the other hand, have their high-end chips manufactured by TSMC, including Apple, AMD, Nvidia, and Qualcomm, get out of the thing with a surcharge of 10 percent, as the Japanese business newspaper Nikkei reports.

Several reasons for the Global chip price hike

TSMC justifies the announcement of higher prices with several factors. The group itself has to deal with increased purchase prices for various raw materials. In addition, there is a rapidly increasing demand beyond short-term effects, since more and more industrially manufactured products are equipped with increasingly complex electronic components.

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As a result, TSMC has to build new manufacturing facilities around the world. And these require gigantic investments. Especially for larger plants that are equipped with the modern EUV process lines, investment costs in the double-digit billions quickly come together. The new plant in the US state of Arizona alone will devour $ 12 billion and TSMC plans to invest $ 100 billion worldwide by 2023.


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