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| Due to delivery bottlenecks TSMC increases chip prices |
Taiwanese semiconductor maker TSMC plans to increase the price of its advanced chips by about 10% and the price of less advanced products by about 20%, according to a new report in the Wall Street Journal.
TSMC is the world's largest chip manufacturer. It's the company responsible for the processors used by Apple, Nvidia, Qualcomm, AMD, and even some Intel products.
For large tech and auto companies, where chips are still hard to come by, the provision of semiconductors is becoming an increasingly important factor.
Compared to the actual labels, there are many other factors that affect the prices of mobile phones, laptops, and game consoles. Therefore, a 10-20% increase in processor cost and COS is not necessarily associated with similar price increases by consumers.
But the high price of one of the most important and more expensive components of the device (for example, the price of the most famous devices has risen.
The Wall Street Journal report did not say whether Apple was affected by TSMC's price hike. Or when chip prices go up, when they want to pass on those extra costs to their customers.
But this Taiwanese semiconductor maker is the only supplier in the world capable of making chips at the advanced level and size that Apple needs to make Apple A and Apple M-series chips for iPhone, iPad and Mac.
TSMC increases chip prices
Additionally, Apple's CEO warned that these restrictions could affect upcoming iPhone and iPad products this fall. Especially for older and less advanced chips.
Higher prices can help alleviate some of the delivery problems TSMC is facing. This is achieved by reducing some of the demand, which results in rarer parts.
The higher prices will also help TSMC raise the funds it needs to support its ambitious investments in capacity expansion. That includes spending $100 billion on a $12 billion manufacturing hub in Arizona and other projects through 2023.
TSMC previously warned that the shortage could continue into 2022. In its latest quarterly earnings report.