As the world's largest and most advanced wafer foundry, Taiwan Semiconductor Manufacturing Co Ltd raised prices when chip production capacity was tight, on the grounds that supply exceeded demand, but demand began to decline in the second half of this year, overcapacity, Taiwan Semiconductor Manufacturing Co Ltd's chip foundry prices will still rise, in addition to Apple Inc has the strength to refuse, the news that AMD, NVIDIA and other chip companies can only accept price increases.
Taiwan Semiconductor Manufacturing Co Ltd's continued price increase next year has become a foregone conclusion. Manufacturers in the IC design industry have been informed that the price of 8-inch wafers with mature technology will increase by 6%, and that prices for 12-inch wafers with advanced technology will increase by 3% to 5%.
Although the increase does not seem to be much, don't forget that the price of chip foundry has gone up a lot in the past two years, and Taiwan Semiconductor Manufacturing Co Ltd has raised the price many times. Even NVIDIA CEO Huang Renxun has to complain about the price of advanced technology such as Huang Renxun.It is considered that the price is much higher than that of the 8nm process used before.So the price of their RTX 40 series graphics cards will also soar, and the prices of graphics cards will not be able to go back to the past.
On the issue of price increase, Apple Inc is the largest customer of advanced technology because it accounts for 37% of Taiwan Semiconductor Manufacturing Co Ltd's income. It was rumored before that Taiwan Semiconductor Manufacturing Co Ltd's price increase was rejected, but it is also said that the two sides are still in the game, and the most likely thing is to accept a little price increase. The overall impact is not significant.
But Apple Inc's VIP treatment cannot be learned by others, not to mention some small chip design companies, even large companies such as AMD, NVIDIA, Qualcomm Inc and MediaTek among TOP5 customers, in the face of Taiwan Semiconductor Manufacturing Co Ltd's strength.It is also inevitable to accept the price increase. It is impossible for them to refuse the price increase. It is only a matter of how much.
The reason why these manufacturers cannot refuse to raise prices is that apart from Taiwan Semiconductor Manufacturing Co Ltd's monopoly advantage, what is more important is that manufacturers are worried that the current overcapacity is only short-term, in case it becomes a shortage of capacity again, it will be passive at that time.