As if finding graphics cards, processors and other devices wasn’t as difficult as they used to be, they’re becoming more expensive as Taiwan Semiconductor Manufacturing Company (TSMC) plans to raise prices.
Taiwan Semiconductor Manufacturing Company Prices Rise
According to a WSJ report, TSMC, the world’s largest chip maker, plans to increase its price by 20% by the end of this year or early next year. Thankfully, most modern chips made with a process of less than 16 nanometers will only increase by 10%, while older chips will increase by 20%.
Many companies, including Apple, AMD, and Qualcomm, rely on TSMC. If these companies see a 20% increase in prices, we can expect that at least some of that increase will be passed on to consumers at some point, making our devices even more expensive.
The company’s 7-nanometer chip manufacturing process is responsible for the AMD Ryzen 5000 processors used in the PlayStation 5 and Xbox Series X game consoles. This could force Microsoft and Sony to raise the prices of their consoles or start making them at a loss.
Apple is another company that relies on TSMC. Rumors of an iPhone 13 are already circulating, it will be interesting to see if Apple can keep the price the same as current models or if there will be a jump.
Car prices could also be affected by the increase, as they rely on older chips made in the manufacturing process, which will see a 20% increase in price. Some new cars are already hard to find, and now the cost of getting out can be higher.
Why is TSMC raising prices?
According to the report, TSMC is raising prices to help reduce demand, which is currently out of control.
It’s almost impossible to find a video card, PS5, or Xbox Series X, and it’s hard to imagine that just raising the price of chips will reduce the demand for these and other devices, but time will tell.