TSMC to Increase Non-Taiwan Chip Production

The first company that comes to mind when it comes to chip production Taiwan Semiconductor Manufacturing Company (TSMC)provides chips to most products you can think of, from many technology giants, from Apple to Tesla. The giant brand has recently managed to be at the top of the world in chip production again.

Yesterday, a statement came from the Taiwanese technology giant that concerns almost all users. Speaking at the company’s earnings call, TSMC CEO CC Wei announced that they will increase chip prices in certain cases.

Chips made outside Taiwan will be more expensive

According to Wei’s statement, if manufacturers choose the chips to be used in their devices If they want it to be produced outside Taiwan you will have to pay more money. The company currently operates outside Taiwan in japan Let us point out that the facility is available. And also of the USA A 12 billion dollar factory in the state of Arizona and in germany plans to open a separate facility. The number of facilities in the US will increase further in the coming years.

The CEO uses the following statements in his statement: “Increased if a customer requests to be in a certain area must share the cost. “In today’s economy, costs will be higher for TSMC, our customers and our competitors.”

From here we can understand why they want something like this. The fact that the company produces its own products outside of Taiwan is due to the economic problems experienced around the world. will increase production costs. This being the case, TSMC’s customers will have to pay more if they want production elsewhere, such as Germany, Japan and the USA. This may reflect on the end user and cause an increase in devices.

TSMC CEO’s statement, production at a special location Those who do not want to will not be affected by this situation It also shows. So only those who have such a request will have to pay additional money.

Could there be a price increase for devices produced by TSMC, such as the iPhone?

The chips used in many different products, from smartphones to consoles, are produced by TSMC. This brings to mind the question of whether the prices of models such as phones and computers we use will increase if device manufacturers have to pay more.

It is difficult to answer this for now. Because everything is entirely up to companies It will depend. If they do not want a special region outside Taiwan, they will not share in these additional costs. But they’ll probably have to raise prices if they want to.

Let’s look at Apple as an example. Apple’s M series and A series All chips are in Taiwan being produced. However, the company also has plans to transfer some to new TSMC factories in the United States. If it does this, there may be a possibility of price increases for products such as iPhone. We will wait and see what the outcome will be.