TSMC has reportedly advised clients that it will be increasing prices. For older process nodes, the Taiwanese foundry will raise prices by 20 percent, while closer to the leading edge, the increase will be 10 percent, according to reports from the US, Taiwan and Japan. For some companies, the hike takes effect immediately, while others will have some respite until next year.
It has been suggested that by inflating prices, TSMC is passing on the costs of ramping up production during the current chip shortage. Additionally, the company may be worried that a 100 billion dollar capital investment as well as starting overseas manufacturing operations weigh on its profitability.