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TSMC is all set to start manufacturing chips from its latest cutting edge semiconductor site that it is situated in the US. Although, it appears that the pricing for these advanced chips will be noticeably more expensive than the ones it makes in its home market of Taiwan.

TSMC’s US made chips are more expensive than their Taiwanese counterparts

For those unaware, TSMC (Taiwan Semiconductor Manufacturing Company) is the world’s largest contract chipmaker and usually made chips for various tech giants from its facility in Taiwan. However, the new chips that will be manufactured in the US will be around 30 percent more expansive than its ‘home made’ counterparts, as per a DigiTimes report. The reason for this move from the company is due to the higher cost of its operations in the US.

TSMC

According to the new report, TSMC’s N4 and N5 process (4nm and 5nm respectively) that will be manufactured in the US will likely be between 20 percent to 30 percent higher. This isn’t surprising since the new site will carry heftier operations costs. The same can be expected from its new plant in Japan where it setup a semiconductor manufacturing site to build less advanced N28/N22 and N16/N12 process nodes. These chips will cost around 10 to 15 percent more than the same chips made in Taiwan.

The report adds that these price hikes are being made to maintain the company’s 53 percent margin rate. In other words, it has to raise the cost to clients to ensure its own profits. It remains to be seen how the customers of TSMC, which includes the likes on AMD, Qualcomm, Apple, and others would offset this rise in cost in their own products. Notably, this news also arrives as the company eyes a 15 billion US Dollars incentive in the US.

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