TSMC may increase wafer prices by 10% by 2025

The world’s largest semiconductor contract manufacturer TSMC plans to raise wafer prices by up to 10% next year, according to a note sent by Morgan Stanley to investors. The information was revealed by investor Eric Jhonsa, who highlighted the high demand for advanced processors.

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TSMC’s negotiations with artificial intelligence (AI) and high-performance computing (HPC) customers such as Nvidia indicate that it may accept this price increase. Currently, 4nm-class wafers cost around $18,000 each.

However, the values ​​could be even higher. This is because they can reach approximately US$ 20 thousand. With this, 4nm and 5nm nodes, used mainly by companies such as AMD and Nvidia, should register an average selling price (ASP) increase of around 11%.

Increase has been happening since 2021

Since the first quarter of 2021, the price of N4/N5 wafers may have increased by about 25% for some customers, according to the report. This upward trend is partly due to the increasing complexity and cost of producing these advanced components.

On the other hand, negotiations with customers in the smartphone and consumer electronics segment, such as Apple, are proving more challenging. Despite resistance, there are signs of acceptance for modest price increases. Morgan Stanley’s report projects a 4% increase in ASP for 3nm wafers in 2025.

Wafer prices, especially at the N3 node, which can currently cost $20,000 or more, are expected to rise next year. The investment bank suggests that companies will likely be able to pass on these additional costs to end consumers, but it depends on the volumes agreed and the specific conditions.

On the other hand, nodes such as 16nm should not undergo significant price changes due to sufficient capacity already existing on the market.

Fonte: Tomshardware