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Taiwan’s TSMC to hike chip prices by 6% in 2023

Chipmaker cites inflation worries, increased costs, expansion plans as reasons for increase

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TSMC. (Reuters photo)

TSMC. (Reuters photo)

TAIPEI (Taiwan News) — Taiwan Semiconductor Manufacturing Co. (TSMC) is planning to hike the prices of its chips by 6% starting on Jan. 1, 2023.

Some TSMC clients say they were informed of the upcoming price increase on Tuesday (May 10), according to CNA. The world’s largest contract chipmaker said the price bump would apply to cutting-edge as well as legacy chips.

The Taiwanese chipmaker cited inflation concerns, rising costs, and expansion plans as reasons for the increase, sources told Nikkei. Increased production costs have weighed on semiconductor manufacturers amid slowing demand for smartphones and personal computers influenced by inflation, the Ukraine war, and COVID lockdowns in China, according to Nikkei.

The latest price increase follows one carried out last August where advanced process chip prices increased 7-9%, while costs for mature node chips were hiked by 20%. TSMC declined to comment on the reported price hikes.