TSMC chip: Apple refuses to accept the price increase

According to reports from theEconomic Daily News, Apple refused to accept a price increase from its sole chip supplier, TSMC. Apparently, in fact, the Cupertino company is completely opposed to the idea of ​​increasing spending next year. But let’s look at the details of the matter.

TSMC chip: Apple refuses to accept the price increase

TSMC, Apple’s largest provider, has plans to raise your prices by 6 to 9% for the next year, depending on the manufacturing process. A rather serious increase, considering that the members of the company are already 20% more expensive than those of all competitors. On the other hand, smaller foundries have increased their prices in recent years due to higher material and logistics costs. In fact, TSMC spent about $ 100 billion on new investments over the next three years, almost forcing factories to raise prices and pass on additional costs to customers.

Following negotiations, Apple apparently has refused to accept further increases price tag for TSMC chips. Which makes the supplier’s situation somewhat complex. Sure, it’s true that TSMC makes all of Apple’s custom silicon chips, but the Cupertino-based company is also estimated to account for more than a quarter of TSMC’s entire revenue, meaning the two companies are closely tied to one. other. Despite this, an improvement in the semiconductor industry’s supply prospects, regardless of inflation, appears to have reinforced Apple’s refusal to consent to price increases. So let’s wait to understand how the situation will evolve.