Apple, TSMC's largest customer, has rejected its plan to raise chip prices next year.

We are talking about services for the production of products, the prices of which may rise not only against the background of general inflation, but also as a result of an increase in the costs of TSMC itself for the development of a new lithography. The manufacturer was originally going to raise prices in the range from 6% to 9%, but later the lower threshold dropped to 3%.

However, Apple managed to avoid price increases, as it generates up to 25% of TSMC's total revenue. The company is likely to be the first TSMC customer to move to 3nm products. Senior smartphones of the iPhone 14 family already use the 4nm A16 processor.

At the end of last year, TSMC already notified its customers about a 10-20% price increase. Price tags have gone up on CPUs, GPUs, SoCs, and controllers. TSMC increased the cost of processing wafers using the 7nm process and beyond by about 10%. The price of working on wafers using the 16-nm process technology has also increased - by 20% at once. The increase took place during 2021.

As a result, TSMC's 5nm and 7nm processes accounted for 49% of total revenue of $13.29 billion in the second quarter of this year. This is approximately $600 million in additional revenue in the first quarter of 2022.

It was also reported that the cost of Samsung chips under already concluded contracts is likely to increase by 15-20%. The company was in talks with its manufacturers due to rising material and logistics costs.

bbabo.Net