Chip Prices Set to Rise Again in 2024 as TSMC's Subcontractors Raise Prices

TSMC's 7nm and sub-7nm subcontractors have offered to raise prices by another 3-6% in 2024. This comes on top of the 3-6% price hike that TSMC itself is already planning.

 

The price hikes are due to a number of factors, including rising material costs, labor costs, and the need to invest in new equipment. The article also states that TSMC's subcontractors are facing increased competition from other foundries, such as Samsung and Intel.

 

This price hikes are likely to have a similar impact to the price hikes that TSMC is planning. They will increase the cost of goods sold for chipmakers like Nvidia and AMD, which could lead to higher chip prices for consumers and businesses. However, the price hikes could also encourage chipmakers to invest in more efficient manufacturing processes and to design more cost-effective chips.