[News] TSMC Reportedly to Raise 3nm & 5nm Prices Soon, Looking to Maintain Long-Term Profit Margins 

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According to a report from wccftech, leading semiconductor foundry TSMC is preparing to increase the prices of its 3nm and 5nm processes. Reportedly, this move is said to maintain its long-term gross profit margin of 53% and secure its leadership position in the semiconductor foundry market.

The report notes that considering the high demand for AI, along with orders for consumer products from IC design companies like Apple and Qualcomm, TSMC’s production capacity remains tight.

Therefore, TSMC is reportedly planning to increase the prices of its advanced processes, such as 3nm and 5nm, by 8%, thereby ensuring stable long-term profit margins. Notably, a previous report from Commercial Times have cited sources, indicating that NVIDIA CEO Jensen Huang once agreed that TSMC’s pricing is too low and will support its price increase actions.

Although the price increase has been rumored for some time, the sources cited by wccftech indicate that TSMC may implement the hike soon.

Currently, TSMC’s 3nm and 5nm process utilization rates are at 100%, indicating complete market dominance in these processes. This already allows TSMC to profit significantly, and the price increase will further benefit their operations.

In addition to advanced processes, there are rumors that TSMC is also raising the price of CoWoS packaging due to the massive demand for AI chips from AMD and NVIDIA. Although specific figures have not been disclosed, TSMC’s rapid expansion of its CoWoS production lines makes the price increase likely.

It’s previously estimated by sources cited in MoneyDJ’s report that TSMC’s CoWoS capacity remains in short supply, at 35,000 to 40,000 wafers per month this year. With the additional outsourced capacity, next year’s production could reach over 65,000 wafers per month, or possibly higher.

Read more

• [News] CoWoS Booming, TSMC Price Hikes Reportedly Imminent
• [News] NVIDIA CEO Jensen Huang Supports C.C. Wei’s Theory and Backs for TSMC to Increase Price

(Photo credit: TSMC)