Taiwan Semiconductor Manufacturing Company (TSMC) forecasts an adjustment in its chip manufacturing services, with increases potentially reaching 10% in 2027. This adjustment will apply to both mature and advanced processes.
Reasons for the Price Adjustment
The increase aims to offset growing costs related to materials, equipment, and the construction of new fabrication facilities. The information was gathered by Nikkei Asia through various sources informed on the matter.
The company, which produces chips for other corporations, has notable clients such as Apple, Google, Nvidia, Qualcomm, Amazon, and MediaTek. The price adjustment is expected to be implemented at the beginning of 2027, following discussions between TSMC and its clients in June, with the final decision made in July. Sources indicated that this more cautious approach aims to allow clients to adapt to the new price levels.
Service Structure and Impact
TSMC's services are divided into two main categories. The advanced chip line, covering 7-nanometer lithography processes or smaller, accounts for 77% of the company's revenue and is used in smartphone processors. For these advanced chips, the projected increase ranges between 5% and 10%, varying according to the contractor and the product. Additionally, orders exceeding previous projections may incur an extra charge of 10% to 15%.
The second line refers to mature chips, which include technologies such as 12 nm, 16 nm, and 28 nm, accounting for 23% of revenues. Although these are older technologies, these components continue to meet the needs of simpler electronics well. In the consolidated chip segment, increases can also reach 10%, although many products remain below this percentage.
Inflationary Factors in the Supply Chain
Nikkei Asia points out that several elements of the supply chain have seen cost increases, including labor, raw materials, chemicals, and logistics. There has been a rise in the prices of items such as fiberglass fabric, printed circuit boards, lasers, and encapsulation packaging in recent months.
Furthermore, massive investment in building data centers for artificial intelligence has rapidly driven up demand for different types of semiconductors, increasing the prices charged. The scenario is also influenced by the dispute between the United States and Iran, which contributes to inflation in gas and oil costs. The publication also mentioned that Intel and AMD recently made similar price movements.
