TSMC, the world’s largest semiconductor manufacturer, is increasing prices for its advanced manufacturing processes. According to reports, the company plans to increase prices by 5 to 10 percent for all 5nm and smaller chip manufacturing processes.

TSMC Increases Chip Prices

There are several reasons behind this price increase. High tariffs imposed by the US and increased supply chain costs are squeezing the company’s profit margins. 5nm, 4nm, 3nm, and 2nm technologies are among the production processes affected by this increase.

This means that TSMC’s largest customers, such as Apple and Nvidia, will face higher costs on their orders. The company aims to maintain demand for these products by offering discounts on older-generation production processes.

Another reason for this change in pricing policy is TSMC’s significant investments in the US. The company has committed to investing $300 billion in its Arizona facility. This investment is establishing new production lines for both advanced chip manufacturing and packaging processes. The company is also preparing to transition to 2nm production in the coming years.

Analysts note that TSMC’s move could lead to a general increase in chip prices. Industry giants like Apple and Nvidia are expected to pass the increased costs onto their product prices. This could particularly impact consumer electronics products such as smartphones, computers, and game consoles. It is expected that these price increases will coincide with the release of next-generation devices.