By the end of this year, TSMC will increase the price of their wafers and it may affect companies like Apple, NVIDIA, AMD, and others. This can ultimately result in consumer products getting more expensive and although NVIDIA and Apple stood against this earlier, the latest reports indicate that they may end up accepting this after all.
TSMC Is Increasing Its Wafer Prices
The Taiwanese semiconductor giant is increasing its wafer prices in the second half of this year and this is going to affect a lot of its customers which includes big names like Apple, AMD, NVIDIA, and now even Intel. The 8-inch wafers are increasing by 6% while the 12-inch wafers will increase anywhere from 3% up to 5%. That means TSMC customers will have to pay more which should also affect the pricing of CPUs & GPUs, and all the consumer products these go into.
Apple and NVIDIA tried to stand against this price hike earlier, but recent reports suggest that they’ve backed off and accepted the higher cost. This is bad news for the industry because, others will probably have to follow suit.
Although, NVIDIA already priced the top-end RTX 4000-series and RTX 6000 GPUs quite expensively, the price hike may also increase the prices for the lower-end 4000-series desktop GPUs alongside all the mobile variants that’ll be coming out in the upcoming months. Even AMD’s 7000-series chips might be at the verge of a possible price hike.
Apple’s M2 series of chips may also see a significant increase in price which will also probably result in price bumps for the upcoming 14″ and 16″ Macbook Pros alongside the next Mac Pro, upcoming iPad Pros, and maybe even the existing 13″ Macbook Air & Pro models after a while.
What This Means For The Consumer?
Clearly enough, if the companies are getting their silicon at a higher price, the products powered by those chips are going to become more expensive as well. In 2021, there was already a hefty price increase of 20% from TSMC and that is partly responsible for the higher prices we’re seeing from Apple and NVIDIA this year, and as the prices increase again, it is definitely bad news for end consumers.