TSMC Plans Price Hike for 8-inch Foundry Services

[ABS News Service/11.03.2022]

TSMC plans a 10-20% price hike for its 8-inch foundry services, with the new prices to be effective starting the third quarter of 2022, according to sources at IC design houses.

On March 9th, according to a report from Taiwan’s “Electronic Times”, some IC designers said, TSMC plans to increase its foundry quotations for 8-inch mature processes in the third quarter, while 12-inch mature and advanced processes are still under evaluation.

However, news from the industry chain shows that although TSMC plans to increase the price of 8-inch foundry services, it will not take effect immediately. The new price is expected to be implemented in the third quarter.

Due to the impact of supply chain and other issues, the world has been shutting down chips, foundry chip manufacturers have announced increases in foundry fees, and semiconductor prices have always been rising.

In September last year, TSMC notified customers that foundry prices for all chips would increase by up to 20%. Among them, the price of 7nm process technology will increase by 3%-10%, and the price of mature process above 12nm will increase by 20%.

In TSMC’s current revenue, 12-inch wafer foundry services account for a large proportion, and the foundry price of 12-inch wafers has been raised several times before.

Although the news of the industry chain did not mention the news of the price increase of 12-inch wafer foundry services, but in the case of strong demand and tight production capacity, TSMC’s subsequent increase cannot be ruled out.