TSMC Rumored To Increase 3nm Price By 5%, Advanced Packaging By Up To 20%

Fresh rumors from Taiwan indicate that the Taiwan Semiconductor Manufacturing Company (TSMC) is gearing up to increase prices for its leading edge 3-nanometer semiconductor products. TSMC's 3-nanometer is the latest chip manufacturing technology in the contract manufacturing industry, and the firm's dominant market position means that the bulk of orders from large technologies companies head its way.

Some of TSMC's high profile customers include Apple and NVIDIA, and while earlier reports this month have speculated at a 3-nanometer price increase, this is the first time supply chain sources have also mentioned some specifics for the purported decision.

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TSMC Facing High Demand For 3nm Products, Aiming For Packaging Price Increases Too Says Report

Today's report comes courtesy of the China Times and it builds on a report earlier this month which had mentioned similar details. According to the China Times, TSMC is set to increase the prices of its 3-nanometer products at a time when it is facing strong demand in the market for the products. 3-nanometer prices are slated to increase by 5%, and it will be accompanied by a much higher increase in advanced packaging prices next year.

Packaging, which refers to the process of assembling the chips into packages that can be used by a computer, has come into the spotlight due to the booming demand for AI products. China Times' sources believe that TSMC will increase its packaging prices by between 10% and 20%, and this increase will accompany a corresponding growth in packaging capacity as well.

Specifically, the sources believe that by this year's third quarter, TSMC's packaging capacity should grow to 33,000 wafers per month from the current 17,000 wafers per month to nearly double.

The report adds that roughly half of TSMC's advanced packaging capacity is for NVIDIA's products, with AMD following in