TSMC has decided to increase prices starting in January next year

In the past period of time, there have been reports that TSMC has contacted customers to inform them that it will increase the quotation of foundry orders in 2023. At the same time, TSMC requires customers to shorten the payment time. The specific length of time depends on the customer’s financial strength, the relationship between the two parties, and the size of their orders.

TSMC FINFLEX technology
According to DigiTimes, TSMC has determined that from January 2023, the foundry price of most process nodes will increase by about 6%, and some advanced process nodes will increase by 7% to 9%. Although the industry has recently been concerned about the sales trend of retail terminals such as smartphones and personal computers in the second half of 2022, it does not seem to affect TSMC’s plans. In the past two years or more, TSMC has raised prices several times due to inflation, rising costs, and capacity expansion.

Last year, TSMC significantly raised its order quotations by the most in a decade. In August last year, TSMC told customers that due to factors such as rising raw material prices and tight production capacity, it is necessary to increase the quotation of wafer foundries. Among them, the range of advanced process nodes is about 10%, and the range of mature process nodes ranges from 10% to 20%.