TECH NEWS – The Taiwanese chip manufacturing giant is trying to maintain its profit margin, which will ultimately impact consumers’ wallets.
TSMC currently dominates the chip market and has the largest share of customers. Due to the AI craze, demand is huge, leaving no room for additional orders. However, the company and its partners continue to face U.S. tariffs on their Taiwanese operations. TSMC, in particular, has incurred significant expenses due to its relocation from the east to the west. TSMC is expected to raise prices by 5–10% across all its high-end processes.
TSMC has already informed its manufacturing partners of the price increase, which will affect nodes such as 5 nm/4 nm, 3 nm, and 2 nm. Consequently, TSMC’s major clients, including Nvidia and Apple, will have to pay more for their chip requirements. The Taiwanese dollar has appreciated in recent weeks, necessitating a price increase for nodes so that TSMC can maintain its profitability. However, rumors also suggest that the company will offer discounts on older node prices.
Regarding TSMC’s shift to the U.S. market, the Taiwanese giant has demonstrated tremendous commitment to the region by increasing its investments to $300 billion and establishing new production lines at its Arizona facility to meet advanced packaging and chip manufacturing demands. TSMC plans to expand to 2 nm in the coming years and provide an independent packaging supply chain for America. These significant investments made many experts anticipate the price increase in advance.
TSMC currently has no serious competitors, meaning it controls price competition. Still, it treats its customers fairly. Despite holding over 50% of the market share, TSMC continues to sell its products at competitive prices, which is one of the reasons for its popularity. In contrast, Nvidia has gone the opposite route, inflating prices to almost absurd levels, while AMD and Intel struggle to keep up.
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