TSMC Decides To Slash 7nm Pricing Amid Weakening Demand, 3nm Costs Rises Up By 10%

TSMC has reportedly decided to raise 3nm chip pricing by a decent margin but has also heavily slashed 7nm process prices amid weakening demand.

TSMC's 7nm Family Now Discounted By 10% To Gain Market Interest, Firm Looks Towards Developing "Specialty" Chips

Well, it looks like TSMC's latest mainstream process will witness a price increase after all, after numerous reports predicted the firm's move. With the AI frenzy in play, the big tech giants such as Apple and NVIDIA are all eying towards integrating the TSMC's 3nm node in their upcoming products. Fortunately, for the semiconductor firm, the customers have agreed upon a price raise, given that TSMC manages a steady supply chain; however, it looks like TSMC's 7nm utilization rates have started to hurt the firm, so they have decided to implement price cuts.

Related Story Apple Supplier TSMC Will Begin Trial Production Of 2nm Chips Next Week, Aiming To Secure A Stable Yield Before Mass Production

Taiwan Economic Daily reports that TSMC's 7nm family of products is expected to witness a widespread 10% increase in pricing. Officials say that the 7nm production was expected to be in full force; however, due to the declining interest from the mobile and computing sector and a delay in production by a single client, TSMC has decided to take a risk on 7nm pricing. With this decline, it's expected that the process might recover its sales traction, but this isn't certain for now, considering most of the markets are currently focused on current-gen processes.

The Taiwan giant might try to raise interest in 7nm by integrating the technology into its custom offerings, similar to what the firm did in 2018-2019 with 28nm. Apart from that, TSMC has plans to establish facilities in Japan in the upcoming years, focusing on advanced processes such as 7nm, so the company could see a revival from such regions. For now, the focus is all on 3nm for the mainstream markets.

TSMC's reign over the markets is steady for now. With the expected