TSMC, the world’s largest semiconductor manufacturer, announced that chip manufacturing processes will be increased in response to the customs duties to be imposed by the US government. This shows that smartphone prices, especially Chinese brands, will increase.
TSMC may increase chip prices due to US taxes
According to reports in Taiwanese media, TSMC plans to increase prices by at least 15 per cent on chips below 7 nm. This rate, which was higher than the initially expected 5-10 per cent increase, was revised with the implementation of US taxes.
This price increase in chip prices is seen as a measure against TSMC’s threats regarding Trump’s taxes. As soon as he took office, Trump said that he would impose 10 per cent tariffs on China and 25 per cent tariffs on Canada and Mexico.
The main purpose of TSMC’s decision to raise prices is to pass on some of the cost burden to major American technology companies such as Apple, Qualcomm, Nvidia and AMD. Given TSMC’s position in the advanced semiconductor manufacturing market, these companies have limited alternatives.
According to the report, TSMC currently has strong price-setting power in the market and is in a position to pass on costs to customers. The company’s move is seen as a strategic response to the developing trade tensions between the US and its competitors.
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