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Chip contract manufacturing: TSMC apparently decides on significant price increase

The world’s largest chip contract manufacturer TSMC is reportedly planning to increase its prices significantly at the turn of the year. Silicon wafers in 7- and 5-nanometer technology in particular are affected by the price increase, but structures of 16 nanometers and above will also become significantly more expensive.

Electronics will become more expensive

Taiwanese news service Digitimes reports, citing semiconductor industry sources, that prices for electronics are likely to rise significantly in the coming year. Chip contract manufacturer TSMC is noticeably raising prices as a result of increased global demand at the end of 2021.

However, this will not only affect computer hardware such as AMD Radeon graphics cards and Ryzen CPUs, as well as the new Intel Arc GPUs, but almost all electronics and household appliances, which are now equipped with chips.

The factories of all semiconductor manufacturers have already been working to capacity for a year, silicon blanks are partly not available at all and if they are, then at significantly increased prices. Accordingly, it is hardly surprising that TSMC is aiming for a price increase for silicon wafers. Chips manufactured using 7 nm and 5 nm technology are to become around 10 percent more expensive. Structures from 16 nanometers, on the other hand, even as much as 20 percent.

Billion-dollar profits and large-scale price increases

According to a quarterly report, TSMC generated the equivalent of about 5.4 billion euros in revenue from sales of 7- and 5-nm wafers in the second quarter of 2021. Older structures of 16 nm and above even came in at nearly 6.6 billion euros in sales. Combined with the planned price increase, that would give TSMC a revenue plus of around 2 billion euros.

As Digitimes reports, other chip contract manufacturers such as Globalfoundries and UMC are also said to be seeking corresponding price increases for the coming year. Infineon has already officially confirmed the increased prices due to the acute chip shortage.

Technology enthusiasts can therefore expect noticeably higher prices throughout the electronics industry from next year onwards. However, it remains to be seen how big the difference will be on the German market. Price increases are usually felt in a muted form in this country and have long since arrived in Germany, especially in the IT hardware sector.

Simon Lüthje

I am co-founder of this blog and am very interested in everything that has to do with technology, but I also like to play games. I was born in Hamburg, but now I live in Bad Segeberg.

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The world’s largest chip contract manufacturer TSMC is reportedly planning to increase its prices significantly at the turn of the year. Silicon wafers in 7- and 5-nanometer technology in particular are affected by the price increase, but structures of 16 nanometers and above will also become significantly more expensive. Electronics will become more expensive Taiwanese … (Weiterlesen...)

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