Just days after we wrote about how Taiwan Semiconductor was the centerpiece at the middle of the global semiconductor shortage, the company has said they are going to be raising prices by up to 20% next year. The report comes via Chinese media and crossed the wire early on Thursday morning.
Earlier this year we reported that semi prices were expected to rise through all of 2021, but recent reports have suggested that production was picking up again. In fact, car chip vendors are now able to “ramp up output” thanks to more foundry house support coming online, Digitimes Asia reported this week.
But that isn’t stopping TSMC from hiking prices, as was telegraphed earlier this year. For example, back in April, suppliers like Japan’s top silicone producer, Shin-Etsu Chemical Co. Ltd. marked up prices between 10% and 20%, according to Caixin, who reported that growing input costs and supply disruptions could be tide that continues to push up prices. Shin-Etsu blamed their price hikes on the rising cost of silicon metal, which they said was a result of demand out of China
Names like Semiconductor Manufacturing International Corp. (SMIC), United Microelectronics Corp., and Powerchip Semiconductor Manufacturing Corp. had all announced intentions to raise prices in similar fashion. Taiwan Semiconductor Manufacturing Co. Ltd. has also said prices are coming in the form of suspending wafer price reductions beginning December 31 this year.
One Jiangsu diode manufacturer said it’s suppliers had raised prices five times since the second half of 2020. The hikes represented a total markup of between 30% and 40%, including a new 10% hike that came into effect last week. The same firm’s inventory was at “half their normal level”, Caixin reported. – READ MORE
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