TSMC is clearly at the heart of semiconductor production. It is estimated that 60% of the world’s production of these chips comes from the brand’s factories. Another interesting statistic is that 80% of the world’s AI chip production comes from its factories. As a result, the brand is raising its prices to finance future projects.
TSMC raises its prices!
The mentioned price increase is 3 to 5% every year for the next four years. The company’s aim is to increase margins and bring in more money to finance future projects. These include opening factories in Japan and developing and opening new lines in the USA, in order to earn the good graces of the Trump administration. But this future financial surplus will also be used to finance the development of new processes such as 1.4 nm.
After all, if the company raises its prices in this way, it’s because it can afford to do so. Once again, TSMC is omnipresent in our lives and is at the very heart of advanced semiconductor production. As mentioned above, 80% of the chips manufactured for AI come from the brand’s factories. Currently, advanced processes account for 74% of the company’s sales, a percentage that will rise to 75% with the 2 nm that will arrive next year.
What’s more, the brand focuses primarily on these nodes, allocating more engineers to them than to more mature nodes. This has the effect of reducing the production of chips in the automotive and industrial sectors, increasing their costs, especially with lower production costs.
Mechanically, these price rises will be reflected in the price of end components. So if you’re planning to buy, don’t delay.
