Taiwan Semiconductor Manufacturing Co. (TSMC) is planning to raise foundry prices for mature process nodes starting in January next year, according to a report by Taiwan Economic Daily cited by Odaily. The report said the planned increase would come after price hikes on advanced process nodes.
Even with higher mature-node pricing on the table, IC design companies still intend to negotiate for more foundry capacity for next year than they secured this year. Industry sources said they need additional support to keep expanding their operating scale.
The report also said production costs for IC makers had already risen in the first half of this year after packaging and testing houses, along with foundries other than TSMC, lifted quotes for mature-node services. In response, companies had already discussed product price increases with clients.
If TSMC goes ahead with the mature-node increase next year, IC design firms are expected to reopen pricing talks with customers. The report added that customers would then try to pass the higher costs further down the chain, creating a ripple effect across the supply chain.
TSMC eyes mature-node price increase from January
Odaily reported, citing Taiwan Economic Daily, that after raising prices for advanced process nodes, Taiwan Semiconductor Manufacturing Co. is also planning to increase foundry prices for mature process nodes starting in January next year.
IC design firms still want more foundry capacity
Despite the planned increase, IC design companies said they will keep pushing for more foundry capacity for next year than they obtained this year as they negotiate capacity allocations. They said the extra support is needed to keep expanding their operating scale.
Higher costs had already shown up in the first half
According to the report, quotes for mature-node services had already risen in the first half of this year at packaging and testing companies and at foundries other than TSMC. That increase pushed up IC production costs, and companies had already negotiated product price increases with clients.
More client pricing talks may follow
If TSMC confirms a mature-node price increase for next year, companies would need to continue talks with clients to raise quotes again, the report said. It added that customers would then try to pass the higher costs on to their own customers, creating a chain reaction.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
