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After Apple, Nvidia also intends to reject TSMC's price increase proposal for next year

After Apple, Nvidia also intends to reject TSMC's price increase proposal for next year

Source:our siteTime:2022-09-29Views:

TSMCs proposal to increase prices next year was rejected by its largest customer, Apple, and TSMCs other major customer, Nvidia, also intends to follow Apples rejection of foundry price increases.

Taiwan Economic Daily reported on September 27, semiconductor market conditions have reversed, for the supply chain has successively caused impact, TSMC and large customers into a price tug-of-war. Previously, the industry rumors that TSMC will increase prices next year, according to different processes, about 6-9%, but later rumored to have negotiated amendments, the rate of increase from 3%, the mature process up to 6%.


But recent market rumors pointed out that TSMC next year's price increase program was rejected by its largest customer Apple, and TSMC's other major customer Nvidia also intends to follow Apple refused to OEM price increases. Industry estimates, as TSMC's third largest customer MediaTek is also expected to get "exempt from price increases" treatment. But for the aforementioned customer-related price news, TSMC responded without comment.

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In this regard, J.P. Morgan believes that if the Q4 terminal demand this year continues to be weak, TSMC may withdraw the price increase program for large customers, confirming the rumors. Morgan Stanley even warned that, as TSMC's largest customer accounting for more than 25% of revenue, if Apple's new iPhone next year with the A-series processors are not all imported into TSMC 3nm process, TSMC 3nm capacity utilization next year is afraid of only fifty percent.

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