Shulou(Shulou.com)11/24 Report--

Thanks to CTOnews.com netizen Huanan Wu Yanzu, OC_Formula for clue delivery! CTOnews.com October 4 news, reports show that Apple has succumbed to TSMC 2023 price increase requirements. Last week, Taiwan's Economic Daily reported that several TSMC customers had received notices of their intention to change prices, but Apple said it would reject any price increases, and Nvidia was closely watching for signs of TSMC's willingness to negotiate. Now, Taiwan's Economic Daily says Apple will pay the extra fees required for TSMC's foundry services over the next year.

According to reports, TSMC intends to increase the output price of 8-inch wafers by 6% and 12-inch wafers by 3-5%. Multiple sources confirm OEM price increases in this range. CTOnews.com has learned that Apple is an important customer for TSMC, reportedly accounting for about 25 percent of its business. However, this does not appear to have affected TSMC's decision making. Because the latest report said that the foundry will not budge on the price increase request.

Nvidia has reportedly been watching, looking for signs that TSMC will negotiate. However, with Apple apparently conceding on its price increases, Nvidia has little hope of cutting costs by squeezing TSMC.

The "secret" of TSMC's seemingly unshakable bargaining position lies in its broad customer base. The industry has been hit by a consumer downturn, most notably demand for semiconductor-dependent consumer products such as graphics cards, smartphones and storage devices. However, some of TSMC's customers remain in a strong demand wave in the second half of 2022 and are optimistic about the year ahead. Technology areas with continued strong demand include automotive, data centers and HPC.

Insiders believe TSMC's current rise of around 5 percent is reasonable, especially given rising inflation rates, which have seen raw material costs rise in most regions. Tsmc also offered discounts in previous booms, or simply sought "modest" price increases.

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