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Taiwan Semiconductor Manufacturing Company (TSMC), the biggest chipmaker in the world, has said that chips made outside of Taiwan will cost more. This is a big change in the semiconductor business.
TSMC is making this move as it grows its industrial skills beyond its home base in Taiwan. This year, the company’s first plant in Arizona will start making a lot of things. There are higher prices, though, to make chips outside of Taiwan, which is where more than 90% of the world’s most complex electronics are made.
During an earnings call, TSMC CEO CC Wei said, “If a customer asks to be in a certain geographical area, the customer needs to share the extra cost.” This means that people who want chips made in the US or other places besides Taiwan will have to pay more.
This way of setting prices could cause prices for consumer electronics to go up around the world. Things like phones, game systems, and computers all use TSMC chips. If companies decide to buy chips made outside of Taiwan⁹, the prices of these devices could go up.
People see TSMC’s move to expand outside of Taiwan as a smart move, even though it will cost more. It goes along with efforts by businesses and governments to get more chips made outside of Taiwan, which China is trying to control. TSMC has factories in Japan and is building more in Arizona. The first one opened this month⁹.
In conclusion, TSMC’s choice to charge more for chips made outside of Taiwan is a big change in the semiconductor business. Prices for consumer products may go up because of this move, but it also shows how the global chip supply chain is changing.
Learn more
1TSMC Will Charge Its Customers More for US-Made Chips
2TSMC will charge more for chips made outside of Taiwan, possibly making devices more expensive
