According to a recent article published by DigiTimes colleagues, TSMC would notify customers a price increase from 5 to 9% for both advanced and mature processes. Prices, which will come into effect in January 2023would be due, according to DigiTimes sources, to expenses, above expectations, for the expansion of production in the United States and Japan. L’galloping inflation and thecost increase related to water, electricity, labor, machinery and transportation tariffs, which significantly increased construction costs, forced the company to revise its annual profit and gross margin growth targets.

Photo Credit: TSMC

TSMC predicts that 2022 will be another year of strong growth, so much so that the annual turnover could increase by an additional 30%. Indeed, the most technologically advanced sectors, such as 5G applications And high performance computing (HPC), will drive the market, dramatically increasing the demand for semiconductors. TSMC is not the only foundry on the market, but other companies like United Microelectronics (UMC), Vanguard International Semiconductor (VIS), Powerchip Semiconductor Manufacturing (PSMC) And Semiconductor Manufacturing International (SMIC) may revise their prices in the future.

We also remind you that the U.S. Department of Commerce could target China-based semiconductor companies under the expanding equipment export ban, which would include SMIC, Hua Hong Semiconductor, and the memory industry, leading to more integrated circuit design companies to expand orders with Taiwan-based foundries to reduce risk.