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Rumour: TSMC to increase prices of its consumer’s electronics chips

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The world is currently facing a semiconductor crisis with most of the manufacturers halting their productions due to a lack of chips available. As such global tech leaders have turned towards Taiwanese Semiconductor Manufacturing Company to ease this crisis.

And as such a new rumor has started developing that TSMC will increase its wafer prices. However, this is not the first time such a rumor has surfaced online, previously we heard the same price hike rumor back in January, in the wake of the ongoing chip crunch that automakers are currently facing.

Earlier when the previous rumor was making rounds, everyone believed that TSMC was aiming for another 15% price increase in response to the increased demand for automotive chips, but as the months passed no further details for the specific increase have come to light.

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Today’s rumors, however, seem to apply to all tech products. As we know, TSMC manufactures semiconductors in two wafer sizes, namely the 12-inch and 9-inch wafers. The chips which are used in consumer electronics are manufactured on 12-inch silicon wafers, and the price of this wafer is rumored to increase.

According to sources, the rumor indicates that by the end of his year, TSMC will have increased its 12-inch wafer prices by $400 for a 25% year-over-year increase – resulting in record-high prices. currently, TSMC is majorly focused on the production of its 7nm process node, and will be increasing the production of its more advanced 5nm process node by the year-end and also the company is looking to bring its leading-edge 3nm process to mass production in the second half of 2022.

However, for the rumor floating around, for now, it’s just talks and nothing more. For further details, we have to wait for the TSMC officials to make any clarifications. In other news, the discounts that TSMC’s major customers negotiated for 2021 have been withdrawn owing to the uptick in chip demand. the automotive sector is desperate to get its hands on silicon for its products. As well as a shift in global work and entertainment patterns due to COVID-19 has increased the demand for consumer electronics such as smartphones and notebooks.

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Nivedita Bangari
Nivedita Bangari
I am a software engineer by profession and technology is my love, learning and playing with new technologies is my passion.

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