The demand for AI chips has skyrocketed, with reports suggesting that Taiwan Semiconductor Manufacturing Company (TSMC) plans to increase prices for its advanced processes, including 3nm and 5nm, by 5% to 10% and its CoWoS package-on-wafer sales by a more significant 15% to 20% in 2025. This adjustment is seen as a response to the growing demand for AI-related equipment and technologies.
TSMC has been facing fierce competition in the field of advanced chip manufacturing, with Intel and other rival chipmakers vying to keep up with its leading-edge technologies. The company has been working to expand its capacity and improve its production efficiency, but the increasing demand for its products has put pressure on its pricing.
The move by TSMC to increase its prices is seen as a possible way to mitigate the effects of the rising costs associated with manufacturing advanced chips. The CoWoS technology, which involves the integration of multiple chips on a single wafer, has been adopted by many leading-edge companies and is becoming increasingly popular in the AI-related industry. As a result, TSMC's move to increase the prices of its CoWoS-related products is likely to be seen as a strategic decision to maximize its profits.
The news is expected to have a significant impact on the global chip market, with many companies that rely on TSMC for their chip supply likely to be affected by the price increase. The move is also likely to accelerate the trend towards further consolidation in the chip industry, as companies look for ways to reduce their costs and improve their competitiveness.