TSMC plans to increase foundry quotations in 2023

by ddos · May 12, 2022

It’s no secret that inflation is widespread across the world, with more and more companies looking to offer pricing on their products. In the past two years, semiconductor production capacity has been at full capacity, and foundries led by TSMC have raised their quotations for orders several times. Shortages in the semiconductor supply chain have eased as inventories of major chip companies have increased and market demand has weakened, but the trend of price increases does not appear to be fading.

According to Nikkie Asia, TSMC has contacted customers to inform that it will raise the quotation for foundry orders in 2023. Different process nodes have different price increases, which are said to be between 5% and 8%. Under normal circumstances, the foundry will be notified one month in advance, up to one quarter in advance, but this time TSMC is nearly seven months earlier, which is rare. However, compared with the substantial increase in quotations in August last year, the price adjustment this time is much smaller. At that time, the quotations of some process nodes increased by 20%.

It is understood that the reason why TSMC does this is to take into account the allocation of production capacity to provide as much time as possible to customers so that plans can be changed appropriately. The recent expansion of TSMC has also affected its pricing strategy. Advanced processes need to invest more capital. It is expected to invest $40 billion to $44 billion this year in the construction of fabs and the purchase of new equipment, which has caused certain pressure on funds.

TSMC plans to increase foundry quotations in 2023

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