Here's Why TSMC Warned Against Price Hike For Second Time Within One Year

  • Taiwan Semiconductor Manufacturing Company Ltd TSM has warned clients for the second time after August against its plans to raise prices, to beat inflation concerns, rising costs, and its expansion plans to counter the global supply crunch, Nikkei Asia reports.
  • TSMC, the leading contract chipmaker, looks to raise prices by "single-digit percentages" across mature and advanced chip production technologies by 2023.
  • The price increases will be 5% - 8% for different process technologies, from cutting-edge to legacy nodes, making products from advanced processors, connectivity chips, and sensors to microcontrollers and power management ICs.
  • Given the slowing demand for products like smartphones and PCs, it might be difficult for clients to accept TSMC's planned price hike fully.
  • Rising production costs are putting pressure on chipmakers amid demand slowdown for smartphones and personal computers on market uncertainties sparked by inflation, the Ukraine crisis, and COVID-related lockdowns in China.
  • United Microelectronics Corp UMC and Semiconductor Manufacturing International Co raised prices several times in 2021.
  • Price Action: TSM shares traded lower by 0.42% at $88.45 on the last check Wednesday.

Posted In: BriefsNewsTechMedia

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.