According to people familiar with the matter, the world’s largest contract chip maker is raising prices by up to 20%, which could cause consumers to pay more for electronics.
Taiwan Semiconductor Manufacturing Co. it plans to increase the prices of its more advanced chips by about 10%, while less advanced chips used by customers such as carmakers will cost about 20% more, these people said. Higher prices will generally take effect later this year or next year, depending on people.
Apple Inc. is one of TSMC’s largest customers and their iPhones use advanced microprocessors manufactured at TSMC foundries. It was not possible to determine how much Apple would pay more.
A TSMC spokeswoman declined to comment on pricing, but said the company works closely with customers. An Apple spokeswoman did not immediately respond to a request for comment.
Price increases are due to the global semiconductor shortage that has affected Apple and most automakers, including General Motors Co. and Toyota Motor Corp. In August, GM said it had to slow down three factories in North America that manufacture large trucks. , the company’s top money maker. Last week, Toyota said it would slow production by 40% in September.