TSMC has so far not been much in the news about the price hike for contract semiconductor component manufacturers. The company’s clients have just now received a notification that from December 31 of this year, TSMC will abandon the traditional price cut for a year, and in total, until 2023, inclusive, $ 100 billion will be spent on expanding production and mastering new technologies.
Not so long ago, TSMC’s management publicly spoke about the need to maintain partnerships with customers, implying a predictable and stable pricing policy, but the industry began to seriously fever after a crisis in the automotive segment arose by the beginning of this year. As the Nikkei Asian Review notes, citing a letter from TSMC CEO CC Wei, in which he addresses customers, fundamental changes in demand are forcing the company to take drastic measures to increase semiconductor production, and this will require additional funds. …
Just this year, we recall that TSMC’s capital expenditures should amount to $ 25-28 billion, and in total until 2023 inclusively, the company is ready to allocate at least $ 100 billion for the corresponding needs. quarter to abandon the traditional reduction in prices for silicon wafers with finished products. Previously, it revised prices downward every quarter, as production increased, costs decreased, and scrap rates decreased. In the opinion of TSMC’s management, this step is the lesser of evils for customers, and it will allow the company to ensure stable operations in the coming years.
Part of the funds allocated for capital construction of $ 100 billion in the next three years will be used to expand existing enterprises, as well as to build new ones, including and using electricity from renewable sources. The bulk of TSMC’s operations are based in Taiwan, with a couple of factories in China and a subsidiary in the United States that produces small-scale customized products for local customers using mature lithographic technology. Along the way, a more modern and productive enterprise worth $ 12 billion is being built in the state of Arizona, which in a few years will be able to offer 5nm products to customers.
According to the head of TSMC, over the past 12 months, TSMC enterprises have been working with one hundred percent workload, and at the same time they still did not allow satisfying the existing demand. Xi-Xi Wei urged customers to be patient as the company endeavors to address the shortage of semiconductor components. TSMC representatives confirmed the company’s readiness to invest $ 100 billion in the next three years to expand production capacity and master new lithographic technologies.
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