TSMC eyes price increase for mature chip production

Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest contract chip manufacturer, is planning to increase the cost of producing chips using its mature technology nodes. These price adjustments are reportedly set to be implemented starting early 2025.

The company has been in discussions with its clients regarding potential price hikes, particularly concerning manufacturing processes at 28 nanometers and older. These mature technologies remain critical for various sectors, including the automotive industry and consumer electronics.

The anticipated price increase is attributed to rising manufacturing costs and sustained demand for chips produced through these established processes. TSMC's decision could impact global supply chains and consumer prices, as many businesses rely on these cost-effective production methods.

As a pivotal player in the semiconductor industry, TSMC manufactures chips for major technology firms. Changes in its pricing structure for a broad range of its production capabilities could have a widespread effect across the technology sector.