TSMC hikes chip prices up to 20% amid global supply shortage

In this Oct. 27, 2005, file photo the logo of Taiwan Semiconductor Manufacturing Co. (TSMC) is displayed during a third quarter press conference in Taipei, Taiwan. (AP Photo/Chiang Ying-ying, File)

TAIPEI (The China Post) — Taiwan Semiconductor Manufacturing Co. (TSMC) told clients on Wednesday its plan to hike chip prices between 7% and 20%.

Several IC design manufacturers received notices from TSMC about the price increases which for some took effect immediately, local media reported.

Analysts expect prices for more advanced processes, such as 7nm and 5nm chips to increase between 7% and 9% while prices for its more mature processes will be raised by about 20%.

The move was largely expected as the shortage in semiconductors continues.

This price hike, however, could also be in response to TSMC’s plan to boost capital expenditures by US$100 billion over the next three years, analysts said, adding that the company has also overseas expansion plans in the U.S. and Japan.