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According to a recent report by DigiTimes, the Taiwanese chip giant TSMC is planning a price hike of 5%-10% across all its high-end processes, including nodes such as 5nm/4nm, 3nm, and 2nm. This comes amid supply chain disruptions that have reduced the company’s profit margins.
TSMC’s 5nm & Lower Chips Might See a Decent Price Hike, Forcing Big Tech to Pay More For Their Orders
As TSMC is currently the primary supplier for major tech giants like NVIDIA and Apple, this price increase will significantly impact their orders. The Taiwanese dollar has appreciated recently, adding pressure on TSMC’s profit margins. To offset these pressures, the firm will likely implement higher prices for its advanced processes while offering discounts for older nodes.
TSMC’s Pivot to the US
In an effort to capitalize on the American market, TSMC has been heavily investing in the United States, with plans to spend $300 billion and establish new production lines in Arizona. The company aims to scale up to 2nm in the coming years and provide a self-sufficient chip manufacturing supply chain for America.
Despite having more than 50% of the market share, TSMC has maintained competitive pricing, which is one reason it remains so popular among customers. However, with no viable competition at present, TSMC now controls the price-setting game.
