What happens when foundries ramp up prices for semiconductor chips?

techwireasia.com, Sept. 15, 2021 – 

• Prices of semiconductor chips have been climbing since the last quarter of 2020 amid a global supply crunch.
• Taiwan's TSMC is the most recent to announce intentions to increase prices of most advanced chips by roughly 10%; less advanced chips will cost about 20% more.
• The industry-wide move likely will impact the sticker prices of end products.

Consumers would be paying more for electronics starting next year as foundries are raking up semiconductor chips prices by as much as 20%. The most recent price hike is being done by the world's biggest contract chipmaker, Taiwan Semiconductor Manufacturing Co (TSMC).

It would be TSMC's biggest price hike in a decade, with most of its most advanced chips to see a 10% increase in price, while less advanced chips used by customers like automakers will cost about 20% more. According to Wall Street Journal, the higher prices will generally take effect late this year or next year.

As it is, TSMC controls over half the global foundry market, making chips for the likes of Apple, Nvidia, and Qualcomm. Known for its cutting-edge tech and high quality, the Taiwanese company normally commands production fees around 20% higher than its rivals, according to industry insiders.

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