A report released by Taiwanese business-oriented media shows Apple has bowed to TSMC’s 2023 price hike demands, but as with all unofficial news, take it with a grain of salt. Last week, The Economic Daily (UDN) said it heard that multiple TSMC customers had received notice of the intended price change, but that Apple had suggested it would. rejection Nvidia is watching for signs that TSMC is open to negotiations. Today, the same source reports: apple intention payment Additional money requested for TSMC’s services next year.
According to the report, TSMC plans to raise production prices for 8-inch wafers by 6% and 12-inch wafers by 3-5%. UDN said it was aware of multiple sources confirming foundry price increases in this range. Apple is a key customer of TSMC, said to account for about 25% of its business. However, this doesn’t seem to give Cupertino any significant leverage over TSMC, as today’s report says the foundry won’t bow to demands for price increases.
Nvidia is reportedly on the sidelines for signs of TSMC negotiating. But with Apple’s apparent bowing to price hike demands, we can’t expect Nvidia to squeeze his TSMC to cut costs.
The “secret” to TSMC’s seemingly impregnable bargaining position is its broad customer base. The industry has been plagued by a consumer downturn, especially for consumer products that rely on consumer semiconductors such as graphics cards, smartphones, and storage devices. However, some TSMC customers continue to ride a wave of strong demand in the second half of 2022 and are positive about next year. Technology segments his UDN highlights that continue to be in strong demand include: Automotive, Data Center, and his HPC.
Finally, UDN shares an anecdote about TSMC’s reputation for “reasonable” behavior. This has eased opposition to demanding price increases in the face of a global recession. Apparently, TSMC only wanted “modest” price increases during the previous boom. Therefore, insiders believe that the current rise of around 5% is justified, especially given high inflation and rising raw material costs in most regions.
