TSMC may increase the cost of chip manufacturing by 25%, leading to an increase in the selling prices of many smartphones

According to previous reports, TSMC is likely to increase chip manufacturing costs by 15%. The reason is that the shortage of processor chips globally is becoming more serious. However, the first quarter of 2021 is coming to an end, but TSMC has yet to raise its price as leaked information.

Even so, the latest United News report states that TSMC is likely to increase the price of its 12-inch wafers by an additional $ 400. If that is the case, the cost of manufacturing mobile processors could rise as high as 25%, a record high.

Previously, due to high chip demand and low supply, TSMC had to withdraw incentives for its customers. But the manufacturer continues to face uncontrollable difficulties and increases costs.

The lack of rain has caused serious water shortages in TSMC’s factories. The city where TSMC’s main manufacturing facilities is located only saw half the rainfall in 2020 as compared to the previous year. Therefore, TSMC had to arrange trucks to transport water to the plant, for cooling purposes in the semiconductor manufacturing process.

If TSMC decides to increase the price of the wafer by 25% and cancel the incentives previously negotiated, the major smartphone manufacturers will be affected and lead to the price of smartphones will likely increase during the period. next time.

Reference: gizmochina