Taiwan Semiconductor Manufacturing (TSM), which makes chips for everybody and everything, plans to raise prices on its silicon by 10% to 20% in 2022, DigiTimes reported today.
The company will raise prices on “mature-technology chips” manufactured on 16 nanometer or larger processes by 20%. Leading-edge chips with circuits smaller than 16 nanometers will see price increases of about 10%.
Taiwan Semiconductor is making the move to improve its gross profit margins, according to tech news site Tom’s Hardware.
Rival chip foundry Samsung Electronics is also reportedly planning to increase prices for its contract chip production, Focus Taiwan said.
Shares of Taiwan Semiconductor closed up 4.39% today to $117.03. Taiwan Semiconductor is a member of my long-term 50 Stocks Portfolio. The position is up 144% since I added it to the portfolio on October 7, 2019.
While I am having a difficult time with political leaders claiming inflation is temporary, slightly up or under control; I am more upset with financial institutions & you reporting on the marginal inflation claims. TSM plans to raise prices on its silicon by 10% to 20% in 2022. Did you report that 30% of auto costs are chip related? How about food prices…….I shop & observe prices on milk, cheese, fish etc up 10-15%. Why is inflation being down played?