TSMC is raising prices for chip production, followed by Samsung. We are waiting for a rise in the price of equipment

The world's largest chip supplier TSMC (Taiwan Semiconductor Manufacturing Company) announced a significant price increase

for the production of semiconductor products.

How serious is it?

So, advanced technological processes (7nm and below)prices will rise by 10%. For example, they are used by AMD for Ryzen and EPYC processors, Qualcomm for Snapdragon chips and Apple for Silicon in iPhone, iPad and Mac. At the same time, 16nm and thicker process technologies will increase in price by 20%. As a result, the cost of one wafer with 28-nm chips will be as much as 3 thousand dollars.

Considering that TSMC services are used by 56%global semiconductor market, there is an obvious rise in prices for mobile SoCs, microcontrollers, graphics processors, etc., and along with them, ready-made gadgets. Thus, analysts predict that because of this, Apple will raise prices for the new line of iPhone 13 smartphones.

The tariffs will come into force in December 2021.

Who else?

Samsung Electronics is expected to raise pricesfollowing TSMC. According to the report, businesses are increasing prices due to significant demand, which is reducing profitability as large amounts of investment are required to expand existing production capacity. “Samsung’s production line is so full that it has outsourced the production of some Galaxy processors,” analysts note.

In addition, other Taiwanese companies - PSMC and UMC, the American GlobalFoundries, and the Chinese SMIC - intend to raise prices for their products.

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