Less than 24 hours after TSMC’s $100 billion investment in the U.S. was discussed, the world’s largest semiconductor manufacturer is all set to raise wafer prices by 10 percent next year. According to the latest details, depending on the node, the company will introduce price hikes of 5 percent to 10 percent, with the older processes also counted, making the situation difficult for companies taking a back seat with previous-generation lithography and those racing to acquire next-generation wafers.
Financial stress on the entire supply chain, plus material costs, has forced TSMC to raise semiconductor prices
The latest report from Nikkei Asia reveals that TSMC’s 28nm, 16nm, and 12nm processes, which fall under the legacy category, will become more expensive in 2027, as will sub-7nm technologies. We previously mentioned in June that the Taiwanese semiconductor behemoth planned on making its wafers pricier, as the new report states that negotiations commenced in the same month and concluded in July.
On the subject of price hikes, TSMC’s spokesperson said that “our pricing strategy is strategic, not opportunistic. We will continue to work closely with customers and sell our value to them.” CEO C.C. Wei also made remarks about these hikes last month, saying that the company wouldn’t resort to the same tactics as memory manufacturers by bringing in massive hikes, but that a 5 to 10 percent bump will still be felt by companies that also have had to endure rising DRAM costs.
For TSMC, the increase has more to do with how the entire supply chain has been burdened financially. From expensive materials to pricey manufacturing equipment, overseas investments involving the construction of chipmaking facilities have forced TSMC’s hand. The report doesn’t mention if the company’s 2nm process is also included in the hike, because if it is, Apple, Qualcomm, and MediaTek could face more problems down the road.
As for NVIDIA, it too will leverage TSMC’s new manufacturing process at some point, making these price increases equally troublesome, forcing customers to seek alternatives, such as Samsung’s various 2nm GAA iterations.
News Source: Nikkei
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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