Apple may account for 25 percent of TSMC’s revenue, but that does not make the company immune to increased chip prices. The global economic landscape continues to witness a shift, and it has forced chip manufacturers to introduce a price hike for various wafers, with a report claiming that starting next year, TSMC’s clients will have to pay up to a 6 percent increase.
70 Percent of TSMC’s Customers Have Reportedly Agreed to These Price Changes, With Apple Continuing to Negotiate
TSMC is currently providing 8-inch and 12-inch chip wafers to customers. According to Economic Daily News, the price of the 8-inch wafer is said to increase by 6 percent, while the 12-inch one could see between a 3-5 percent hike, depending on the lithography. Apple may continue to negotiate aggressively with its chip partner seeing as how it generates a quarter of annual revenue for the firm, but it will eventually have to give in to TSMC’s demands.
The California-based giant was earlier reported to have rejected the price hike that could affect the launch timeline of Apple’s next-generation custom silicon, such as the A17 Bionic for the iPhone 15 Pro and iPhone 15 Ultra and the M3 for future Macs. Apple already defied rumors from all corners this year, which clamored that the iPhone maker would introduce a price increase for the iPhone 14 Pro and iPhone 14 Pro Max, but as you all know, the latest premium models start from $999.
Unfortunately, 2023 might have a different tale to unfold for the iPhone 15 Pro and iPhone 15 Ultra. Since Apple is rumored to introduce more exclusive upgrades next year for its top-tier iPhone lineup to better distinguish between the less expensive iPhone 15 models and the pricier ones to increase its margins, Apple may charge customers more thanks to TSMC’s rumored chip price increase. Whether or not Apple intends to absorb those wafer price increases and pass savings onto customers is something we will find out in the coming months.
For now, we recommend readers who intend on upgrading to the iPhone 15 Pro, iPhone 15 Ultra, or a future Mac to be prepared to pay more for these products when they launch in 2023.
News Source: Economic Daily News