Since yesterday, there has been intensive news of price increases from wafer foundry manufacturers in the market, among which TSMC, which has been converging before, has become the focus of the market.
According to industry sources, TSMC has informed MediaTek, Ruiyu, Lianyong and other customers on the 24th that the production process above 16nm will increase by 20%, and the new order will come into effect in December. Industry insiders say this is the biggest rise in the history of TSMC.
According to relevant reports today, TSMC Q4 plans to increase across the board, increasing the advanced process below 12nm by 10% and the mature process by 20% above 12nm.
Although the details are not consistent, it is almost certain that TSMC has planned to increase the mature process quotation by 20% this year, and it has been reported that 22nm and 28nm are among them. The company currently offers a maximum price of about $2800 for 28nm, reaching $3360 after a 20 per cent increase, surpassing UMC, which also reported an increase in 28nm prices yesterday (Q1 quotes nearly $3000 next year). The same is true for other manufacturing processes, and TSMC has thus regained its position as the leader in wafer wages.
TSMC's plan to raise prices is not limited to 2021. Taiwan's Industrial and Commercial Times reported yesterday that TSMC has initially decided to increase Q1 contract prices next year, with mature processes up 15% and advanced processes up 10%.
In response to the above divergent opinions on the price increase news, the protagonist TSMC's response is as usual: do not comment on the price issue.
The company announced in March this year that it plans to cancel the sales discount due to the increase in the difficulty of advanced process technology and the increase in the cost of stacking materials. However, now, on the one hand, the investment in 2/3nm research and development is increasing, on the other hand, the cost of mature process expansion equipment is high, and the cancellation of the discount alone is not enough to offset the cost increase. According to industry insiders, TSMC will only be able to maintain the 50% gross profit barrier by 20% this time, and it is even expected to return to 52% or higher.
Recently, rumors of over-order hoarding by downstream manufacturers in the semiconductor industry have become more and more surging. While TSMC has responded to the outside world's doubts about the market situation with a sharp rise, it can also confirm real orders and reallocate capacity. More accurately grasp the supply and demand situation-if customers cannot accept the price increase, they can give up production capacity; and customers who are willing to bear such a big rise should be manufacturers in urgent need of production capacity.
It is worth mentioning that since the beginning of this year, the IC design link is to transfer costs, and it has also followed the wafer factories to raise their quotations one after another. however, due to the high rate of increase, it is becoming more and more difficult for end customers to accept, and the reversal of supply and demand in the superimposed market is worried. Recently, the rising trend of IC design has begun to converge. However, with the emergence of TSMC's "biggest rally in history", United Power and other contract manufacturers are also rising one after another, which is expected to dispel doubts about declining demand, and the upward movement of IC designers will also be supported.
