According to Taiwan’s “Digital Times” report, despite the sluggish global semiconductor market, TSMC’s capacity utilization rate in the first half of 2023 also fell sharply, but the market reported that TSMC is still planning to increase its production capacity in 2024. Quotations for advanced manufacturing processes, and negotiations and communication with many large customers have been completed one after another, and the probability of price increase is quite high.
▲ Picture source Pexels
According to the IC design industry, starting from January 2024, TSMC plans to increase the quotation of advanced manufacturing processes by 3%~6%. According to the manufacturing process, order size and close cooperation, different manufacturers have different increases. The source also revealed that TSMC has successively communicated with many customers such as Apple, MediaTek, AMD, Nvidia, Qualcomm and Broadcom.
According to the analysis, in the face of multiple pressures such as overseas expansion costs and rising electricity bills, despite the market downturn and many foundries are still in a state of cutting prices to maintain customers, TSMC still decided to offset the cost by increasing the quotation of advanced manufacturing processes. On the other hand, since TSMC is clearly ahead of competitors such as Samsung in the advanced process below 7nm, it is more confident about this increase.
TSMC said it would not comment on market rumors.
According to previous reports, Nvidia CEO Huang Renxun recently confirmed for the first time that he has closely cooperated with TSMC, and announced that the latest H100 chip will be exclusively manufactured by TSMC, and even the next generation of the foundry will still be handed over to TSMC. MediaTek’s 3nm products have also been put into production at TSMC, and its 3nm automotive flagship chip is expected to enter mass production in 2025.