TSMC to Continue Increasing Prices of 5nm and 3nm Advanced Processes in 2025
TapTechNews August 6th news, Taiwan media Digitimes today quoted the words of IC (Integrated Circuit) designers reporting that TSMC has successively informed many customers in late July that the two advanced processes of 5nm and 3nm will continue to increase prices in 2025.
It is pointed out that the specific rate of increase will vary according to the different wafer input scale, products and cooperative relationship of customers, falling within the range of 3% to 8%.
In addition, as the demand for advanced packaging of customers continues to rise, TSMC needs to further expand its production capacity, and TSMC will also raise the quotation of CoWoS service in this context.
The background of TSMC's price increase this time is that the cost of advanced processes continues to soar, making it difficult to achieve the established goal of maintaining a 53% gross profit margin for a long time. The price increase means that part of the cost increase is transferred to downstream customers, reducing the difficulty of fulfilling financial goals.
TapTechNews note: For reference, according to the second-quarter financial data announced by TSMC on July 18, the gross profit margin of the previous quarter was 53.17%.
On the other hand, TSMC's two major competitors, Samsung Electronics and Intel, have encountered yield and loss problems respectively. Even if TSMC raises prices, customers will find it difficult to change foundries.
TSMC Chairman and CEO Wei Zhejia once said after the shareholders' meeting in June:
The market says that TSMC's price is the most expensive, but in terms of the Die obtained by customers, TSMC's price and wafer are better than others, so TSMC still has room to raise upward, and also hopes to raise it soon.
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