Recently, TSMC announced that the foundry prices of chips with mature processes of 16nm and above will increase by 10% to 20%, and the prices of chips with 7nm and more advanced processes will increase by 10%. The market speculates that the price increase may be related to the continuous decline in gross profit margin in the past two or three quarters. With the increase in the price of materials required for foundry, the foundry does not want to bear all the costs, so it shifts to manufacturing chips, and the price increase is logical.
Affected by TSMC, another major foundry Samsung also announced a price increase. At present, the main products of Samsung foundry include NVIDIA's RTX 30 series graphics chips, Qualcomm's Snapdragon 888/888 Plus chips and so on. Samsung announced that it will start to increase its foundry prices in the second half of this year, with an expected increase of 15%-20%. In the face of price adjustments, some customers have agreed to increase prices and sign new contracts.
Another market reaction brought about by TSMC’s price increases may be the prices of end products. It is reported that the global share of TSMC’s 8-inch foundry is 45%-50%, and the global foundry share of the 12-inch 90nm-10nm process is close to 70%. Its products are widely used in various terminal markets, such as smart phones, high-performance computing, automotive electronics, and the Internet of Things. In order to avoid the impact of gross profit margin, the price of terminal products may increase greatly. Among them, new energy vehicles will be more affected. According to foreign media, the price of chips is 10 times higher than the original price, and the chips required on a new energy vehicle are about 150-200.
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