Semiconductor industry leaders revealed that TSMC, the leading wafer foundry, has notified customers of price increases for advanced processes. TSMC responded to reporters' inquiries today and pointed out that it would not comment on price issues. TSMC's pricing strategy has always been strategy-oriented, not opportunity-oriented, and it will continue to work closely with customers to provide value.
TSMC had a strong intraday trend on the 3rd, reaching a maximum of 1,520 yuan, an increase of 20 yuan, and finally closed at 1,510 yuan, an increase of 10 yuan, or 0.67%, with a market value of nearly NT$39.16 trillion.
Semiconductor industry players recently revealed that TSMC notified customers in September that prices for advanced processes below 5 nanometers would be raised for four consecutive years, which is an unprecedented situation. In addition, TSMC will transfer equipment and manpower from mature processes to advanced processes. It is expected that supply shortages for mature processes will not be ruled out next year.
Industry insiders believe that TSMC has made huge investments in Arizona, USA, and will build 6 wafer fabs, 2 advanced packaging plants and 1 R&D center. The total investment amount is as high as 165 billion US dollars. The intensifying cost pressure may be the main reason for TSMC to increase its quotation for advanced processes.
TSMC previously stated that as the production capacity of wafer fabs in Kumamoto, Japan and Arizona, the United States, is further increased, the profit dilution from overseas wafer fabs will be more significant. It is expected that in the next five years starting from 2025, the impact of mass production of overseas wafer fabs on gross profit margin will be approximately 2 to 3 percentage points per year in the initial stage, and will expand to 3 to 4 percentage points in the later period.
Mobile phone chip manufacturer MediaTek recently pointed out in an online corporate briefing that amid tight production capacity, MediaTek will strategically adjust prices and allocate production capacity to various product lines to reflect rising manufacturing costs. Whether it is a response strategy to the increase in OEM quotations has attracted much attention.
Further reading: Due to rising costs of advanced manufacturing processes and pressure from overseas expansion, TSMC has begun to raise prices for major customers.