TSMC to raise foundry prices by about 6% in 2023
Jun.28,2022

Asian Tech Press (June 28) -- The world's largest foundry TSMC will raise prices by about 6% in 2023, sources said.

TSMC has confirmed that prices for most of its semiconductor manufacturing processes will rise by about 6% from January 2023, despite recent concerns that many end-market demands may disappoint in the second half of 2022, industry sources said.

Many IC design companies are pessimistic about their sales prospects by the end of this year due to reduced orders from brand-name equipment suppliers amid growing macroeconomic uncertainty, according to a report from Taiwanese media outlet DigiTimes on Tuesday, citing the source.

However, TSMC and other pure-play foundries in Taiwan still expected to see their 2022 revenue hit a record high, the person said.

The source noted that TSMC and other Taiwan-based foundries have not yet seen significant cuts in orders from their major customers, which are on track to still account for more than 95% of production capacity by the end of this year.

Taiwan-based foundries are also mainly seeking capacity expansion as they enter into long-term order commitments with their customers. In addition, rising raw material and labor costs, coupled with rising electricity costs, are putting pressure on foundries to further increase their offers.

The source further pointed out that longer lead times for semiconductor equipment are also dragging down the capacity expansion of global foundries. Delays in the delivery of fab equipment have risen to as long as 30 months, with no sign of decline.

Within less than a year, there have been two rounds of news of price increases from TSMC. The chipmaker notified customers at the end of August last year that it would start raising prices for its 7nm and 5nm processes by 7% to 9%, and the rest of its mature processes by about 20%.

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