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Chipmakers expected to raise prices in 3rd quarter

UMC, VIS, PSMC expected to hike prices, TSMC to end price discounts on new orders

Semiconductor manufacturing (Getty Images)

Semiconductor manufacturing (Getty Images)

TAIPEI (Taiwan News) — Amid the continuing global semiconductor shortage, some foundries are expected to hike prices as manufacturing capacity remains tight.

According to industry sources talking to Digitimes, Taiwan’s United Microelectronics Co (UMC), Vanguard International Semiconductor (VIS), and Powerchip Semiconductor Manufacturing Co (PSMC), the U.S.’ GlobalFoundries, and China’s Semiconductor Manufacturing International Co will likely increase prices in response to capacity shortages at 8- and 12-inch fabs.

Quotes for the third quarter from these foundries are expected to be higher than prices from the first half of the year, sources told Digitimes.

As for the world’s largest contract chipmaker — Taiwan Semiconductor Manufacturing Co (TSMC) — while it is not choosing to increase prices, it will cancel all price discounts for new orders in 2021 and 2022, sources say, which will have the same effect as a price bump. TSMC and other foundries will continue to see orders outpace production capacity in 2022 as well.

Foundries have been seeing continued demand from fabless chipmakers, especially for less advanced chips made at 8-inch fabs, per the report. TSMC, UMC, VIS, and PSMC have all said they plan to add capacity for mature processes and that these new lines are slated to be up and running sometime in 2023.

Updated : 2021-06-14 08:31 GMT+08:00