How TSMC’s 25% price hike in Chip production will affect your next Smartphone purchase?

The world’s most leading chipset manufacturer, Taiwan Semiconductor Manufacturing Company (TSMC) was currently said to increase its price by 15 percent due to the shortage of the ongoing chipset. As it becomes the end of the first quarter and still the company has not increased its pricing.

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A new report from United News has unveiled that TSMC could increase the price of its 12-inch wafers by $400. If it is done by the company then it will be a 25 percent price hike which will beat all the previous records and will be an all-time high record. It is notable that the company has switched to 5nm process nodes for the chipsets, and also tries to make them more effective, powerful, and energy-efficient.

TSMC Rumored To Hike Chip Prices By 25% By 2021 End As Alleged Workers  Receive No Overtime Pay

In the second half of the next year, it is expected that a Taiwan-based company is started shipping 3nm chips. It is informed that the next-generation processed node is buffering to deliver 25% to 30% more power and 10% to 15% more performance at that same power level.

The chips which are manufactured by this company have a high demand on the market, but the supply of the chips is very low, so TSMC has step backward from the discounts that are offered to the customers. Recently, the company is stuck in other situations which are out of their control and also adding the company’s expenses.

Alleged Prices of TSMC Silicon Wafers Appear | TechPowerUp
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There are some other issues like a lack of rain that has created a serious shortage of water and the city where TSMC is situated only received half amount of rain in 2020 with the comparison to the previous year. Due to this condition the company is forced to arrange the tankers to store water at its facilities.

If this company is deciding to hike the prices of the wafer by 25 percent and cancel all the previous deals with the other companies, then it is expected that the makers of the smartphone could end up shelling more amount of money than they had budgeted for and also that price will be passed to the consumers.

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