According to reports, TSMC is reportedly planning to raise wafer foundry prices by 10%, drawing significant attention from the industry. NVIDIA CEO Jensen Huang stated that although TSMC’s advanced process pricing is high, it is “very worthful.”
Huang pointed out that building wafer fabs and processes below 2nm is extremely difficult and costly, but the pricing is consistent and fair for every customer.
Semiconductor industry insiders noted that TSMC’s planned price hike is mainly due to rising costs of building fabs in the U.S., global inflationary pressures, exchange rate fluctuations, and increased capital investment in technology.
This includes a possible 30% price increase for 4nm process manufacturing at TSMC’s U.S. fab to reflect the overall cost structure of “Made in the USA.”
TSMC Chairman Mark Liu recently stated that revenue from AI processors (including CPUs, AI accelerators, and GPUs, excluding network connections, edge computing, and end-device AI) is expected to double again this year, with a compound annual growth rate of nearly 45% from 2024 to 2029, indicating strong market demand.
To support massive capital expenditures and maintain reasonable gross margins, TSMC’s pricing strategy adjustment is deemed necessary.
Supply chain sources revealed that NVIDIA is already on TSMC’s 2nm process client list and will adopt next-generation AI chips in the future.
As process technology continues to shrink, technical complexity and failure risk increase in tandem, making higher wafer foundry pricing an inevitable trend.
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