The COVID-19 pandemic has severely impacted the supply chain for several technology companies and has created a shortage of key components. With the production impacted, manufacturers are looking to raise pricing.
TSMC, the world’s leading contract manufacturer for chipsets, is expected to do the same for its new automotive chips unit, for which the company is likely to cite the global shortage of components as the reason.
As per the report, Advanced Integrated Circuits (VIS), the automotive chipset unit or subsidiary of TSMC is considering increasing pricing by up to 15 percent while other foundries are also looking to do the same.
If the companies decide to increase the pricing, it will be the second round of price increase since last fall. Reports indicate that the price rise could take effect sometime at the end of February or early March.
With the increase in pricing for key components such as chipsets, the overall price of the Smart Car could also get increased, which can slow down the pace of adoption of electric vehicles, which is now gaining momentum globally.
Meanwhile, Samsung has partnered with Telsa to work on developing a new 5nm EUV chip for autonomous driving, which is currently said to be in the Research & Development stage but we should know more about it in the coming months.
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