These tech giants could increase the prices of their products

These tech giants could increase the prices of their products
These tech giants could increase the prices of their products

TSMC, the world’s leading chip manufacturing factory, risks facing a shortage in the face of growing demand in the AI ​​sector. As a result, the prices of products from giants Apple, Qualcomm, NVIDIA and AMD could increase.

Intel will invest billions of dollars in new foundries to compete with TSMC and Samsung // Source: Laura Ockel – Unsplash

TSMC (Taiwan Semiconductor Manufacturing Company) has established itself over the years as the global factory meeting the industry’s semiconductor needs. It is in these factories that, for example, the chips marketed by Apple are manufactured. With the artificial intelligence sector booming and requiring high-capacity chips like those produced by TSMC, the manufacturing chain could find itself in disarray.

Preferred builders

Presented in 2022, the stock of 3nm chips from TSMC was taken over by Apple in order to equip their latest devices. After a period of exclusivity, the Taiwanese manufacturer was able to open its production to new customers such as Nvidia, Qualcomm and AMD. The thinness of these chips allows them to have better performance and are therefore found on devices such as smartphones or even supercomputers.

We learn, through Taiwan Economic Daily, that this supply of 3 nm chips from TSMC is today reserved for the four technology giants: Apple, Qualcomm, NVIDIA and AMD. This allows them to fulfill their orders until 2026. After tripling their 3nm production capacity last year, TSMC finds itself facing ever-increasing demand. These new chips are currently in wide demand and used in the field of artificial intelligence as well as in the smartphone industry where their use is becoming widespread.

An increase in prices to be expected

TSMC does not seem to want to play the shortage game. The Taiwanese manufacturer is banking more on a price increase linked to the improvement of its products. It has already moved certain production lines from their 5nm chips to 3nm in order to increase its monthly production to improve the situation. However, to cope with this dependence and the future shortage, it is the manufacturers at the end of the chain who could choose to increase the price of their products. However, it is still too early to measure this increase.


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