TSMC to Raise Chip Prices by 10–20 Percent

Yang Jie, Stephanie Yang, and Yoko Kubota, reporting for The Wall Street Journal (News+):

Taiwan Semiconductor Manufacturing Co. plans to increase the prices of its most advanced chips by roughly 10%, while less advanced chips used by customers like auto makers will cost about 20% more, these people said. The higher prices will generally take effect late this year or next year, the people said.

Apple Inc. is one of TSMC’s largest customers and its iPhones use advanced microprocessors made in TSMC foundries. It couldn’t be determined how much more Apple would pay.

Not just iPhones: TSMC manufactures all “Apple silicon”. And no one else can make them. Really, this is just Econ 101: demand for TSMC chips is high, supply is constrained, so prices are going up.

Update: Compelling alternative theory.

Sunday, 29 August 2021