Atkinson | Release Date: August 7, 2024 11:30 | Categories: Semiconductor, Wafer, Chip

Foreign media pointed out that the leading semiconductor foundry TSMC is preparing to raise the prices for its popular 3/5 nanometer process to maintain a long-term 53% gross profit margin and its leadership position in the semiconductor foundry market.

According to Wccftech, considering the huge demand for artificial intelligence and the orders for consumer products from IC design companies such as Apple and Qualcomm, TSMC's production capacity is still tight. In order to control the quantity with price, TSMC has decided to raise the prices for its advanced processes such as 3/5 nanometers by 8% to maintain a stable long-term gross profit margin.

Although the price increase has been rumored for some time, recent reports indicate that TSMC is likely to raise prices in the near future. Products utilizing the affected processes may also see price increases. Currently, TSMC's utilization rate for the 3/5 nanometer process is as high as 100%, indicating its complete dominance in the market. TSMC is already profiting from this, and the price increase will further benefit its operations.

In addition to advanced processes, it is rumored that TSMC is also raising the prices for CoWoS due to the huge demand for AI chips from AMD and NVIDIA. Although specific figures have not been disclosed, TSMC is rapidly expanding its CoWoS production line, which is why a price increase is inevitable.

Considering that TSMC has almost no competitors and holds an absolute advantage, with companies like Samsung lagging behind in terms of yield and orders, customers are also willing to accept TSMC's price increases, allowing TSMC to maintain its lead.

(The source of the first image：shutterstock)