Here's Why TSMC Warned Against Price Hike For Second Time Within One Year
By Anusuya Lahiri
Taiwan Semiconductor Manufacturing Company Ltd (NYSE: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 (NYSE: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.