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iPhone Prices May Rise: TSMC Will Receive More Money From Companies Applying for Non-Taiwan Chip Production

  • April 19, 2024
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The first company that comes to mind when it comes to chip production Taiwan Semiconductor Manufacturing Company (TSMC)supplies chips for most products you can think of, from many

The first company that comes to mind when it comes to chip production Taiwan Semiconductor Manufacturing Company (TSMC)supplies chips for most products you can think of, from many technology giants, from Apple to Tesla. The giant brand has managed to get back on top of the world in chip manufacturing lately.

Yesterday there was a statement from the Taiwanese technology giant that concerns almost all users. During the company’s earnings call, TSMC CEO CC Wei announced that they will increase chip prices in certain cases.

Chips made outside of Taiwan will be more expensive

According to Wei’s statement, if manufacturers choose the chips used in their devices If they want it to be produced outside of Taiwan you will have to pay more money. The company currently operates outside Taiwan in Japan Let us point out that the facility is available. And also of the US A $12 billion factory in the state of Arizona in Germany plans to open a separate branch. The number of facilities in the US will continue to increase in the coming years.

The CEO uses the following statements in his statement: “Increased if a customer requests to be in a certain area must share the costs. “In today’s economy, costs will be higher for TSMC, our customers and our competitors.”

From here we can understand why they want something like this. The fact that the company produces its own products outside Taiwan is due to the economic problems around the world. will increase production costs. If this is the case, TSMC’s customers will have to pay more if they want production elsewhere, such as in Germany, Japan and the US. This can impact the end user and cause an increase in the number of devices.

Statement from TSMC CEO, production at a special location Those who do not want to will not be affected by this situation That also appears. So only those who have such a request will have to pay additional money.

Could there be a price increase for devices produced by TSMC, such as the iPhone?

The chips used in many different products, from smartphones to consoles, are produced by TSMC. This brings to mind the question of whether the prices of models like phones and computers that we use will rise if device manufacturers have to pay more.

It is difficult to give a provisional answer to this. Because everything is entirely up to companies It will depend. If they don’t want a special region outside of Taiwan, they don’t share in these extra costs. But they’ll probably have to raise prices if they want to.

Let’s take Apple as an example. Apple’s M-series and A-series All chips are made in Taiwan is being produced. However, the company also has plans to transfer some of it to new TSMC factories in the United States. If this happens, there may be a possibility of price increases for products like the iPhone. We will wait and see what the outcome will be.

Source: Web Tekno

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