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TSMC Increases Chipset Prices, 2023 It Will Be Difficult to Find Cheap Smartphones

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Taiwan Semiconductor Manufacturing Company (TSMC) will increase chipset prices in 2023. Photo: ist

TAIWAN – Global chipset manufacturer TSMC plans to increase prices for most chipsets starting January 2023. Unmitigated, the increase is quite large, reaching 6%.

A number of parties also predict that the impact of this price increase will be felt directly by the world community. Where they will find it difficult to find a cheap smartphone.

Page Gizchina reported, the increase in the price of chipset assembly costs by TSMC itself was influenced by rising electricity costs, raw material costs, labor costs, and other costs.

With this number of increases, the company was unable to stem the cost of production, so it was forced to increase the price of the chipset products offered.

However, until the end of 2022, TSMC chipset orders have not experienced a reduction. The company’s orders will still account for more than 95 percent of production capacity.

The company will still increase its chipset production capacity by the end of this year. However, it is not yet known what will happen to TSMC in early 2023 if the price actually rises.

Perhaps the production capacity for the next two years will be lower than expected. Which also has an impact on the scarcity of smartphones.

To note, currently several major chipmakers in the industry rely on TSMC manufacturing. MediaTek is currently using TSMC chips for its Dimensity and Helio lineup.

Qualcomm also relies on TSMC for the Snapdragon 8+ Gen 1 SoC chipset. The Snapdragon 8 Gen 2 will also use the TSMC process and the 3 Nm TSMC chipset is also likely to be affected.

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As it will be difficult to find a smartphone with a 3 Nm chipset until 2024. TSMC seems to be delaying the launch of the chipset which is predicted to have the fastest performance.

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