Taiwan Semiconductor Hikes Chip Prices By Up To 20% – Real Pundit


Just a few days after we wrote about how Taiwan Semiconductor was at the center amid the global semiconductor shortage, the company had said they could increase in prices by up to 20% next year. The report came from the Chinese media and crossed the wire early Thursday morning.

Earlier this year we reported that semi prices are expected to rise all around 2021, however recent reports it is suggested that production is also taking off. In fact, auto chip sellers can now “increase output” thanks to the many in -house foundry support that comes online, Reported by Digitimes Asia this week.

Yet that won’t stop TSMC from hiking prices, as telegraphed earlier this year. For example, in April, suppliers such as Japan’s leading silicon maker, Shin-Etsu Chemical Co. Ltd. marked prices between 10% and 20%, respectively Caixin, who reported that rising cost of entry and supply disruptions could be blamed for continuing to push up prices. Shin-Etsu blamed their price increase on the rising cost of silicon metal, which they said was a result of Chinese demand.

Names like Semiconductor Manufacturing International Corp. (SMIC), United Microelectronics Corp., and Powerchip Semiconductor Manufacturing Corp. all announced intentions to raise the price in the same trend. Taiwan Semiconductor Manufacturing Co. Ltd. also said that prices will come in the form of a suspension on the reduction in the price of thin bread starting December 31 this year.

A Jiangsu diode manufacturer says suppliers have raised prices five times from the second half of 2020. The increase is an overall markup of between 30% and 40%, including new increase of 10% that started last week. The inventory of the same company is at “half of their normal level”, Caixin reports. – READ MORE

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