Cars may rise in price due to rising chip prices

The world's largest contract chip manufacturer TSMC wants to raise prices for new automotive components.

The reason for this is most likely the global shortage.

According to sources, the TSMC Advanced divisionIntegrated Circuits (VIS), which deals with automotive chips, expects to increase product costs by 15%. Other businesses seem to want to do the same.

If TSMC does decide to raise prices, this will be the second such increase in the last six months. The cost may rise as early as February or March.

Rising component prices will lead to an increase in the overall cost of cars with smart systems. And this could slow the pace of adoption of electric vehicles.

Meanwhile, Samsung is developing new 5nm chips for drones instead of Tesla.