TSMC hints at possible chip price increases due to inflation
TSMC’s chief financial officer said that costs had risen due to inflation and disclosed the possibility of increasing semiconductor chip prices. However, 4~5he drew a line at any sharp increase amounting to times the current level.
TSMC Chief Financial Officer Wendell Huang said in a local interview that it was true that costs had increased due to inflation. He hinted at the possibility of raising semiconductor chip prices because of the higher costs. However, 4~5he said there would be no sharp price increase amounting to times the current level.
CFO Huang explained that TSMC reflects the value provided by its technological leadership and excellent manufacturing capabilities. This explanation means that technological expertise and production capacity are taken into account in the pricing process. He did not disclose the specific extent or timing of the increase.
TSMC produces cutting-edge chips designed by Nvidia, AMD, and Apple, among others. The report stated that the company’s price increases could raise the overall cost of building AI infrastructure. It also mentioned that, in the long term, they could affect the prices of electronic devices.
TSMC Chairman C.C. Wei has also said at the regular shareholders’ meeting that he wants to raise prices, like its competitors. While drawing a line against sharp increases, he said the company could ask customers to accept price hikes to secure profitability. The company did not disclose details of its discussions with customers.
In addition to Taiwan, TSMC is expanding production facilities in the United States, Germany, and Japan. Some observers suggested that government pressure was a factor, but CFO Huang denied that the expansion decisions were based on anything other than customer demand. He emphasized that the most advanced production lines would remain in Taiwan.
CFO Huang said that fully relocating the manufacturing ecosystem would take 5 years or 10 years, or longer. The company said it is responding in the short term by expanding its production hubs. Further changes to its pricing policy will have to be confirmed through future announcements.
Sources: 뉴시스 경제
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