It is reported that TSMC will increase the price of 5nm and 3nm processes by 3% to 5% in 2025, and has notified customers in July

According to news from this site on August 6, Taiwanese media "Electronic Times" reported today, citing IC (integrated circuit) design industry, that TSMC has successively notified many customers in late July that the two advanced processes of 5nm and 3nm will continue to be launched in 2025. Price increase. The report pointed out that the specific price increase will depend on the customer's film production scale, products and cooperative relationships, and will fall within the range of 3% to 8%. In addition, customers' demand for advanced packaging continues to increase, and TSMC needs to further expand production capacity. TSMC will also increase its CoWoS service quotation in this context. The background of TSMC's price increase is that the cost of advanced manufacturing processes continues to soar, making it difficult to achieve the established goal of maintaining a 53% gross profit margin in the long term. Price increases mean that part of the cost increase is transferred to downstream customers, reducing the difficulty of achieving financial targets. Note from this site: For reference, based on TSMC’s second-quarter financial data released on July 18, its gross profit margin in the previous quarter was 53.17%.

▲ Inside view of TSMC’s 12-inch wafer fab. On the other hand, TSMC’s two major competitors, Samsung Electronics and Intel, have encountered yield and loss problems respectively. Even if TSMC increases prices, it will be difficult for customers to switch to foundries.
Wei Zhejia, Chairman and President of TSMC, said after the June shareholders’ meeting:
The market says that TSMC is the most expensive, but judging from the die that customers get, TSMC’s prices and wafers are better than others, so TSMC There is still room for an increase, and I hope it can be increased soon.

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