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| Economy |
| World's largest chipmaker to raise prices, threatening costlier electronics |
| 2021-08-27 |
| [FoxBusiness] The world’s largest contract chipmaker is raising prices by as much as 20%, according to people familiar with the matter, a move that could result in consumers paying more for electronics. Taiwan Semiconductor Manufacturing Co. plans to increase the prices of its most advanced chips by roughly 10%, while less advanced chips used by customers like automakers will cost about 20% more, these people said. The higher prices will generally take effect late this year or next year, the people said. The price increases come in the wake of a global semiconductor shortage that has affected Apple and most car makers, including General Motors Co. and Toyota Motor Corp. In August, GM said it had to idle three factories in North America that make large pickup trucks, the company’s biggest moneymaker. Last week, Toyota said it would curb production by 40% in September. The price increases have a twofold purpose for TSMC as it addresses the shortage. In the short term, higher prices push down demand and preserve supply for customers who have no other choice. Over the longer term, the higher income will help TSMC invest aggressively in new capacity, according to analysts. The company has said it plans to spend a total of $100 billion over the next three years on new factories and equipment as well as research and development. It is expanding its production capacity in Nanjing, China, and has started construction on a $12 billion facility in Arizona. The company’s market dominance gives it more pricing power than suppliers usually enjoy. TSMC accounts for more than half of the global semiconductor foundry market by revenue, according to Taiwanese research firm TrendForce, and it makes more than 90% of the world’s most advanced chips. |
| Posted by:Skidmark |
| #14 Stop and think about the BRAND NEW Factory Vehicles piled up in inventory yards already, waiting on IC chips for them. |
| Posted by: NN2N1 2021-08-27 19:27 |
| #13 Biden administration to start regulating chip manufacturing in 5... 4... 3.. |
| Posted by: CrazyFool 2021-08-27 17:39 |
| #12 Intel expanding its American base. |
| Posted by: Procopius2k 2021-08-27 17:36 |
| #11 Because they need to cash in before the Chicoms invade and force majure is declared. |
| Posted by: ed in texas 2021-08-27 17:29 |
| #10 Intel is also planning to increase their fab capacity and also possibly buy some existing capacity. |
| Posted by: M. Murcek 2021-08-27 17:29 |
| #9 According to the article, ruprecht, TSMC is building a $12 billion chip factory in Arizona. |
| Posted by: trailing wife 2021-08-27 17:09 |
| #8 There really aren't that many chip makers out there. Something like 6 (Global Foundries, TSMC, Samsung, IBM, Intel, and one in Japan) now that China is out (more or less). Other companies design chips but send the designs to one of those 6 to have them made. That makes it look like more companies are creating chips than that but nope. Once China was pushed out of buying the newest equipment, shortages and increased prices were seem inevitable at least for a short time. Samsung is building a new fab in Austin Texas, I think someone was building in Arizona or New Mexico so hopefully a year from now the shortage will be over. |
| Posted by: ruprecht 2021-08-27 17:05 |
| #7 Taiwan should not be the world's largest chipmaker. We put ourselves at far too great a risk, especially obvious now. Pay the higher prices and make the chips here. |
| Posted by: Glenmore 2021-08-27 14:59 |
| #6 everything else is going up, why wouldn't they? |
| Posted by: Chris 2021-08-27 13:38 |
| #5 shortage of REE except China. hmmmm |
| Posted by: warthogswife 2021-08-27 12:41 |
| #4 Because Taiwan needs to look out for itself now? |
| Posted by: Dron66046 2021-08-27 12:14 |
| #3 Why is there a chip shortage? |
| Posted by: Skidmark 2021-08-27 11:50 |
| #2 Bring on the price controls. It worked so well last time... |
| Posted by: M. Murcek 2021-08-27 11:13 |
| #1 How dare they raise prices! You would almost think it's their factory... |
| Posted by: magpie 2021-08-27 10:19 |