TSMC: Apple agrees to the price hike from 2023

According to reports from Taiwan’s business-oriented media, Apple has agreed to TSMC’s demands for a price hike for 2023, but as with all unofficial news, don’t believe everything you read. The Economic Daily (UDN) reported last week that some TSMC customers had reportedly received warnings of the proposed price rises, but that Apple had said it would reject any increases. Nvidia was claimed to be keenly monitoring TSMC for any indication that it would be willing to compromise. According to a current rumour from the same source, Apple will pay TSMC the required additional sum for its services in the upcoming year.

The reports state that TSMC plans to increase the price of 8-inch wafer production by 6% and that of 12-inch wafers by between 3% and 5%. According to UDN, it is aware of various sources who have verified the spectrum of price hikes for foundries. Apple is a key client of TSMC, reportedly contributing to about 25% of its revenue. This doesn’t seem to have given Cupertino much influence over TSMC, though, since the story from today claims that the foundry will not budge on its demands for a price rise.

According to reports, Nvidia has been keeping an eye out for indications that TSMC will negotiate.

TSMC
credit: tomshardware

However, with Apple seemingly caving in to the requests for a price hike, there is little optimism that Nvidia will be able to reduce its prices by applying pressure to TSMC.

The “secret” to TSMC’s unbeatable negotiating stance is the size of its clientele. Consumer downturns have severely affected the business, most notably in the market for consumer goods dependent on semiconductors, such as graphics cards, cellphones, and storage devices. However, some of TSMC’s clients are still benefiting from a robust demand wave in H2 2022 and seem optimistic about the upcoming year. UDN singles out the automotive, data centre, and HPC technology sectors for their enduringly strong demand.

Last but not least, UDN offers a story about how TSMC’s reputation for “reasonable” behaviour has mellowed opposition to its requests for price hikes in the wake of a global slump. Evidently, during prior boom times, TSMC only requested “moderate” pricing increases. Insiders therefore consider the present 5% or so hikes to be realistic, especially in light of rising inflation and fluctuating raw material costs in the majority of locations.

Also Read:

source

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

More like this

IPL 2025: SRH vs GT - Preview, Prediction, Starting XI and Where To Watch The Match LIVE

IPL 2025: SRH vs GT – Preview, Prediction, Starting...

Sunrisers Hyderabad are set to take on Gujarat Titans in Match 19 of IPL 2025 at the...
IPL 2025: Archer, Sandeep and RR Batters Fire to Hand PBKS First Loss

IPL 2025: Archer, Sandeep and RR Batters Fire to...

Yashasvi Jaiswal piling on the runs. Jofra Archer carrying forward the rhythm he rediscovered against Chennai Super...
ISL 2024-25 Semifinal: FC Goa vs Bengaluru FC - Preview, Prediction and Where To Watch The Match LIVE

ISL 2024-25 Semifinal: FC Goa vs Bengaluru FC –...

FC Goa are set to welcome Bengaluru FC to the Jawaharlal Nehru Stadium in Goa for the...
5 Footballers Who Played for Both Manchester United and Manchester City

Top 5 Footballers Who Played for Both Manchester United...

In this blog post, we’ll explore the fascinating stories of footballers who played for Manchester United and...
MS Dhoni’s Retirement Rumours Heat Up After Parents Show Up for CSK vs DC Match

MS Dhoni’s Retirement Rumours Heat Up After Parents Show...

The cricketing world stands at attention as fresh MS Dhoni retirement rumors sweep across stadiums and social...

LATEST NEWS

IPL 2025: SRH vs GT – Preview, Prediction, Starting XI and Where To Watch The Match LIVE

Sunrisers Hyderabad are set to take on Gujarat Titans in Match 19 of IPL 2025 at the Rajiv Gandhi International Stadium in Hyderabad on...

IPL 2025: Archer, Sandeep and RR Batters Fire to Hand PBKS First Loss

Yashasvi Jaiswal piling on the runs. Jofra Archer carrying forward the rhythm he rediscovered against Chennai Super Kings. Maheesh Theekshana and Wanindu Hasaranga finding...

ISL 2024-25 Semifinal: FC Goa vs Bengaluru FC – Preview, Prediction and Where To Watch The Match LIVE

FC Goa are set to welcome Bengaluru FC to the Jawaharlal Nehru Stadium in Goa for the second leg of their Indian Super League...

Top 5 Footballers Who Played for Both Manchester United and Manchester City

In this blog post, we’ll explore the fascinating stories of footballers who played for Manchester United and Manchester City. We’ll focus on primary keywords...

Featured