The price of iPhone, graphic card and processor will increase

The price of iPhone, graphic card and processor will increase

The price of iPhone, graphic card and processor will increase

TSMC, the main supplier of chips to many big tech companies, is likely to raise chip production prices soon. According to Digital Trends And according to Nikkei Asia, TSMC increased the price of its chips by 20% in 2021; But it seems that this price increase was not enough to reduce the effects of the coronavirus on TSMC’s activities.

Anonymous sources say TSMC It has informed its customers that it will increase the costs related to chip production from 2023 onwards. Apparently, the reason for the price increase of TSMC chips is the concern of rising inflation and rising costs and the plan to expand chip production in order to meet market demand. In the last two years, the supply chain of many industries faced problems, and the lack of chips had a significant impact on various industries (from mobile phones and computers to automobiles).

Currently, TSMC has big customers such as Apple, Nvidia, Intel and AMD, and these companies have paid more for chip supply since last year. Earlier this year, DigiTimes said that TSMC’s processor prices will experience significant growth in 2022 due to rising production costs.

There are still months left until the beginning of 2023; But TSMC has already announced the changes so that its customers have enough time to adjust the prices.

It is said TSMC plans to spend 44 billion dollars this year to expand the production line of its factories. This cost is only part of the 100 billion dollar investment by the Taiwanese to strengthen their position in the semiconductor industry.

  • Each TSMC 5nm wafer costs about $17,000
  • TSMC has increased the cost of chip production

Recently, the graphics card market has improved and the price of some models has decreased; However, the price changes of TSMC chips will eventually increase the graphics card price again; Because AMD and Nvidia are very dependent on TSMC to produce their next generation GPUs.

It is said that Nvidia has signed a 10 billion dollar contract with TSMC to produce a 5nm chip. AMD is expected to pay a total of $6.5 billion to its suppliers this year, which includes TSMC.

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