TSMC To Increase Chip Prices: WSJ

Taiwan Semiconductor Manufacturing Company, the largest semiconductor manufacturer in the world, is going to increase the price of semiconductors amidst the global shortage, reported The Wall Street Journal. The hike will result in an increase in the price of all the major electronic manufacturers across the globe.

TSMC produces the chipsets for Apple, AMD, Nvidia, Qualcomm, and many other leading makers of devices. The shortage of chipsets has been a persisting problem for the last few months as electric vehicles, mobile phones, and computer manufacturers have had to halt production at multiple plants to wait for the chips. The pandemic has pushed the entire world to work from home, causing a heavy demand for devices. Added to that, the movement towards electric vehicles has taken on some serious pace causing the strain in supply.

However, the report has not specified how much will TSMC increase the prices but people in the know think that it will cause the devices to become more expensive. Apple's most advanced chips, the A15 Bionic SoC and the Qualcomm modem are both produced by the Taiwanese manufacturers. The company also makes the chips for other Apple devices as well. This report, coming just ahead of the launch of Apple's latest iPhone 13.

Similarly, Qualcomm's Snapdragon processors, the heart of most android phones, are also produced by TSMC. While Samsung uses Exynos as their in-house SoC, it is TSMC that produces those as well.

TSMC had warned in their latest quarterly result announcement that the shortage might extend to 2022 and therefore, it can be deduced that many of the popular devices will be significantly more expensive.

TSMC said in March, that it will be investing $100 billion on new plants, six of which will be in the US. One of the plants, a $12 billion endeavor, will be set up in Arizona and the work will start from 2024. At their peak, the six plants will be able to produce 100,000 12-inch chipsets combined.

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