TSMC Chip Prices Projected to Rise Due to Surging Demand and Strengthening Taiwanese Currency

As demand for semiconductors continues to surge, TSMC is poised to implement price increases that exceed prior expectations, reflecting the company’s ability to navigate this unprecedented market landscape.

TSMC to Raise Prices for 5nm and Smaller Nodes in Response to High Demand, Including CoWoS

The current trajectory of semiconductor prices indicates that reductions are unlikely, particularly for advanced nodes produced by TSMC. The Taiwan-based semiconductor giant is experiencing substantial demand from its primary clients, which include industry leaders such as Apple and NVIDIA. As highlighted in a recent analysis by Goldman Sachs (via Taiwan Economic Daily), TSMC is predicted to raise the prices of its CoWoS offerings and high-end processes significantly more than initially anticipated. This adjustment is attributed mainly to the appreciation of the Taiwan Dollar.

Forecasts suggest that pricing for processes under 5nm may experience a year-over-year increase of approximately 3%, while CoWoS pricing could rise by about 5%.These figures may be adjusted upward if TSMC decides to account for currency fluctuations in its gross margin strategy. As top-tier technology companies have limited alternatives to TSMC for their sophisticated process requirements, they will likely have to accept these price increases. The demand for TSMC’s innovative products has reached unprecedented heights, further amplified by the current AI boom, significantly enhancing the company’s standing in the marketplace.

TSMC Reportedly Reaches '100% Utilization' With 5nm & 3nm Supply, Showing Its Dominance Over The Markets

The chip industry’s dynamics heavily favor TSMC at this juncture, with projections indicating that the company could dominate over 75% of the foundry market in the coming years, effectively becoming the sole supplier for many major tech firms looking for cutting-edge components. Analyst Charles Shi from Needham has forecasted that TSMC’s revenue could reach nearly $160 billion by 2027, primarily driven by the escalating demand for AI technologies, amid the struggles of competitors like Intel and Samsung to keep pace in this critical sector.

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