[News] These Types of Chips Are Reportedly Facing Price Increases

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Currently, the global semiconductor industry is entering a new period of transformation. With the rapid development of AI, big data, cloud computing, and other technologies, the demand for high-performance computing chips, optical communication chips, and advanced packaging has surged, and recent reports suggest that prices for these types of chips are increasing.

Advanced Process and Advanced Packaging Products May See Price Increases

According to a recent report by Morgan Stanley, TSMC is considering raising prices for its 3nm process and CoWoS advanced packaging technology in response to soaring market demand. TSMC plans to implement these price increases in 2025, with the cost of its 3nm process potentially rising by up to 5%.

Industry analysts point out that on the demand side, major AI chip manufacturers such as NVIDIA and AMD heavily rely on TSMC’s 3nm process, and the explosive growth in AI technology has driven continuous demand for these chips, contributing to the price increase.

On the supply side, the high research and production costs associated with advanced process technology—including equipment investment, material costs, and R&D personnel—add significant pressure to the supply chain. Multiple factors have led to a tight supply of such chips, further driving up prices.

Additionally, TSMC’s 5nm and 4nm process quotes have increased more than previously anticipated by 4%, with some price hikes reaching as much as 10%.

Reports indicate that TSMC also plans to raise prices for its CoWoS advanced packaging technology, with potential increases between 10% and 20%. High demand for CoWoS from major companies like NVIDIA, AMD, Microsoft, Amazon, and Google has resulted in a shortage of CoWoS packaging capacity, which has driven up prices.

According to TrendForce research, NVIDIA is the primary driver of demand for CoWoS, and with the upcoming launch of its Blackwell series, demand for CoWoS is expected to increase by more than 10 percentage points annually by 2025.

Optical Communication Chip Sector Begins Price Increases

Demand for high-speed, high-bandwidth, and low-latency optical communication is rising, particularly in data centers, enterprise networks, and telecommunications, driving demand in the optical communication chip market. Recently, media reports revealed that Marvell, a major optical communication chip manufacturer, has issued a price increase notice, with its entire product line set to see price hikes starting January 1, 2025. According to TrendForce, Marvell ranked sixth in the global IC design market in 2023.

Industry forecasts predict that, driven by ongoing advances in optical communication technology and expanding applications, the global optical communication chip market will grow rapidly in the coming years.

The development and application of technologies such as silicon photonics, optoelectronic hybrid integration, and high-performance photonic chip materials are expected to bring new growth points and opportunities to the optical communication chip market.

(Photo credit: Marvell)