TSMC, the world's largest semiconductor manufacturer, will increase its prices at the end of this year . The move, released by DigiTimes, seeks to improve the company's profit margins, but could directly impact a wide variety of consumer market devices.
Although TSMC does not officially provide details on its prices, the report indicates that the production processes of chips of 7 nm or less will be up to 10% more expensive . These are used in electronic devices such as smartphones and computers.
On the other hand, wafers for manufacturing processes of 16 nm or higher will increase by 20% . In this case, these are usually cheaper, but they are widely used in the automotive industry, household appliances and other products.
Today, companies like Apple, AMD, and Qualcomm make the design of their chips, but they are not the ones who make it. TSMC is the company in charge of bringing these designs from paper to semiconductors that give life to different products.
Precisely because of this, the price increase in TSMC's manufacturing processes can directly impact various industries. However, some companies will be more prepared than others to deal with this scenario.
Apple could resist TSMC's surge
Photo by Photography Account at Unsplash As Tom's Hardware points out, due to the high price of its products, Apple would be more prepared to face a 10% increase from its supplier TSMC, so a price increase from the Cupertino company is unlikely. .
Meanwhile, companies like Qualcomm and AMD could be forced to increase their prices for the consumer . This is because a 10% increase could complicate your financial results. However, the new TSMC costs are expected to come into effect only in December of this year.
DigiTimes indicates that it is not only TSMC that is raising its prices. Other industry giants such as GlobalFoundries, Powerchip Semiconductor Manufacturing (PSMC), Semiconductor Manufacturing International (SMIC) and United Microelectronics (UMC) have also responded with increases due to growing demand.
However, the rise of semiconductor manufacturers would not be exclusively a way to obtain greater benefits from the thirst of the market. According to experts, current production levels have led to an increase in the risks of sophisticated equipment, due to less maintenance and greater wear.
In response to this, companies such as TSMC and those mentioned above seek to increase their prices to offset risks and costs. They are also investing in new manufacturing technologies to prepare for tomorrow's challenges while improving margins and profitability.
