TSMC set to raise chip prices by up to 20 percent: report

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TSMC set to raise chip prices by up to 20 percent: report

The contract manufacturer that produces chips for some Apple devices, Taiwan Semiconductor Manufacturing Co., is set to raise its prices by between 10 percent and 20 percent, according to a Wall Street Journal report.

Apple and TSMC did not immediately respond to requests for comment Thursday.

TSMC produces chips for Apple’s iPhone lineup, but it’s not clear how much the price increase will impact Apple products, the Journal reported.

Advanced chips are likely to increase by 10 percent in price, while less-advanced chips could rise in price by as much as 20 percent, according to the report.

The forecast comes after device makers including Apple have warned of worsening processor supply constraints and a hit to growth. Processor makers Intel and AMD have also pointed to ongoing shortages through at least the rest of the year.

During Intel’s latest quarterly earnings call in July, CEO Pat Gelsinger said he expects shortages to “bottom out” in the second half of this year, but it will take another one to two years “before the industry is able to completely catch up with demand.”

While processor supply issues have been impacting the industry for several years, surging demand for devices during the pandemic has made supplies even tighter.

The PC market will still see significant growth for 2021 as a whole, but the growth will be slower than previously expected due to industrywide component shortages, research firm IDC reported Tuesday.

IDC revised its worldwide PC forecast for 2021 down to growth of 14.2 percent year over year. That’s compared with the prior forecast of 18.1 percent growth for the market this year, which the research firm had issued in May.

This article originally appeared at crn.com

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