Studies revealed by Taiwan’s business-orientated media point out that Apple has yielded to TSMC’s value improve calls for for 2023, however as with all unofficial information, take it with a grain of salt. Final week The Financial Each day (UDN) mentioned that it heard a number of TSMC prospects had obtained notices of the supposed value adjustments however that Apple had indicated it might reject any will increase – with Nvidia watching intently for indicators that TSMC is keen to barter. Right now, the identical supply stories that Apple will pay the requested more money for TSMC’s companies within the coming yr.
In line with the stories, TSMC intends to up 8-inch wafer output costs by 6% and 12-inch wafers by between 3 and 5%. UDN mentioned that it is aware of of a number of sources who confirmed this vary of foundry value will increase. Apple is a major buyer of TSMC, mentioned to account for about 25% of its enterprise. Nonetheless, this doesn’t seem to have given Cupertino any vital leverage over TSMC, as at this time’s report says that the foundry wouldn’t budge in its value improve calls for.
Nvidia has reportedly been watching from the sidelines for indicators that TSMC will negotiate. Nonetheless, with the obvious cave-in of Apple over the worth improve calls for, it doesn’t give a lot hope for Nvidia to chop its prices by placing the squeeze on TSMC.
The ‘secret’ of TSMC’s seemingly unassailable bargaining place is its broad buyer base. The trade has been slammed with client downturns, most notably in demand for client semiconductor-reliant client merchandise like graphics playing cards, smartphones, and storage units. Nonetheless, a few of TSMC’s prospects are nonetheless using a robust wave of demand in H2 2022 and searching optimistic in regards to the coming yr. Know-how segments highlighted by UDN for his or her continued buoyant demand embrace; automotive, knowledge middle, and HPC.
Lastly, UDN shares an anecdote about TSMC’s repute for ‘affordable’ habits, which has softened opposition to its requests for value will increase within the face of a worldwide recession. Apparently, TSMC solely sought ‘modest’ value will increase in earlier increase intervals. Therefore, insiders see the present 5% or so will increase as affordable, particularly with greater inflation, and uncooked supplies prices swinging up in most areas.