News TSMC may increase wafer pricing by 10% for 2025: Report

[Admin]

TSMC plans to hike wafer pricing for HPC customers by 10%, 3% - 4% for other clients, according to analysts.

TSMC may increase wafer pricing by 10% for 2025: Report : Read more

 

[Thunder64]

This is what happens when there is a near monopoly. Step it up Samsung and/or Intel.

 

[hotaru251]

havent they raised prices nearly every yr for past 2 or 3?

 

[usertests]

This is what happens when there is a near monopoly. Step it up Samsung and/or Intel.

There's also enormous demand because of the AI bubble, with talk of trillions being spent on GPUs/accelerators. It's also affecting the memory market with companies like Samsung stepping up and shifting production from DRAM to HBM.

 

[magbarn]

$1999 price for 5090 confirmed.

 

[redgarl]

Well, they can do whatever they want at this point.

 

[redgarl]

$1999 price for 5090 confirmed.

10% of the price of the chip, not the whole graphic card...

 

[DS426]

havent they raised prices nearly every yr for past 2 or 3?

Yes, and the article noted those approximate amounts. 10% here, 5% here, and another 10% now coming, so it's definitely adding up.

I don't know why they wouldn't just hold the line on existing nodes but increase new nodes that come online more than in the past, i.e. the bleeding edge takers just have to pay the lion's share. Boo hoo if Apple or nVidia are complaining.

Glad Intel finally has new capacity coming online this year and over the next several years as TSMC definitely needs to get rechecked. Samsung has some too but I think they're gaining less than TSMC and Intel based on current plans if I correctly recall.

 

[thisisaname]

$1999 price for 5090 confirmed.

You think it is going to be that cheap 🤣

 

[thisisaname]

Guess they want a slice of that AI money.

 

[magbarn]

10% of the price of the chip, not the whole graphic card...

Jensen uses any excuse to jack up the prices. Now that AMD has entirely bowed out of the high end in the next upcoming generation, sky's the limit. The more you buy, the more you save. TM

 

[williamcll]

TSMC's offers are simply too far ahead compared to Intel and Samsung. No regulations will ever be made to keep the prices down.

 

[thestryker]

It's a shrewd move as the first node that should be able to compete with them won't be shipping any parts until 2025 which likely means third party would be 2026 at the earliest. Probably also a decent way to pay for the increased packaging facilities they need for CoWoS (thanks AI).

 

[KnightShadey]

Quarterly Earnings call/report is next week, should be actual guidance at that time. 🤔

Looking ahead, another 5% blended increase is anticipated for 2025 in a bid to help TSMC's gross margin rebound to 53% - 54% by 2025.

TSMC's Gross Margin's were already in that range, 53% for 4Q23 and 53.1% for 1Q24. They likely want to return to 55+% of a year ago (56.3%). 🧐

Makes sense to increase pricing when demand has skyrocketed without trailing capacity constraints easing, especially when these customers can afford it, and are spending like sailors on shore-leave.
Even 16nm (and 12nm) capacity is still going strong with new products for HPC and Ai chips of smaller players as they await 7nm and 5nm capacity to free up, let alone 3nm. Samsung SF4X and SF3 options are still the fall-back option not the main attraction for those with money to spend. 🤑