Taiwan Semiconductor Manufacturing Company (TSMC), the chip manufacturer that provides silicon to some of the world's largest technology firms, is reportedly set to raise its prices once again.
It seems the 20% price hike it applied to its products in 2021 isn't enough to offset the effects of the Pandemic.
According to a report from Nikkei Asia, TSMC has told its clients that the cost of its Silicon will go up in the future.
TSMC is said to be attributing the price rise to inflation concerns, rising costs and its own massive expansion plans to help alleviate a global supply crunch.
The substantial 20% increase that happened in 2021, has caused TSMC customers, which include the likes of Apple, Intel, and Nvidia, to pay higher rates.
A report from the start of the year indicated that TSMC processor prices would grow substantially because of an increase in foundry costs.
The prices will be increased in the range of 5% to 8%. The reason for the early announcement is to give customers some time to prepare for the price adjustments, while TSMC is moving to raise prices to address increasing costs and capital needs for historic expansions.
According to the report, TSMC is planning to spend up to $44 billion in order to expand its chip manufacturing capacity. It is part of a larger $100 billion investment strategy to strengthen its position as one of the world's most valuable tech firms.
Who is TSMC? Some of the world's most popular devices are powered by the company's chips. Apple is the most valuable client.
The A-series chips are required for products like the iPhone 13 and iPhone SE.
The M1 Pro and M1 Max are found in some of the company's latest devices, including the 2021 MacBook Pro model and Mac Studio.
When a technology corporation is affected by rising costs for its parts, the end result is usually customers having to pay the difference instead of the company taking the financial hit.
It's not just more expensive Apple products that may become the new norm, at least for a year or so, once the next generation of graphics cards arrives.
Team Green has paid $10 billion to TSMC for its 5nm Silicon order, and is expected to shell out $6.5 billion this year to its chip suppliers, which includes TSMC.
With technology evolving and becoming more commonplace, TSMC has been enjoying record success in its bottom line.
It had a revenue record in April with $5.83 billion in sales, which is a huge leap over the previous year.
TSMC had six consecutive quarters of record sales. In December, it generated around $5.6 billion, which was its highest revenue amount for a single month.
It is clear that leading technology firms rely on TSMC's Silicon more than ever before, and this will continue to be the case moving forward.
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