Chip Prices Projected to Surge 2022 as TSMC Follows Rivals in Raising Fees

Chip Prices Projected to Surge 2022 as TSMC Follows Rivals in Raising Fees

(Nikkei Asia) Markets are warming for higher prices of electronic chips and devices in 2022 after the biggest producer TSMC moved to raise its production fees.

TSMC, which has a $100 billion expenditure budget set for the next three years, is now keen to stem out overbooking by clients who are trying to secure their supply.

Smaller factories have increased their fees since the end of 2020. The semiconductor industry has been under pressure due to material shortage and the high logistics cost.

Analysts have reported that chipmakers had their production fees for the legacy chips jump by 40%, with the overall chip prices already up.  

Some microcontroller chips are now selling at a price 400% higher, making it even harder for electronic manufacturers who are rushing to get enough chips to fill orders.

Taiwan Semiconductor Manufacturing Company controls over half of the global chip market.

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