The semiconductor market is seeing a significant shift, and TSMC is at the forefront of it. As demand for its cutting-edge chips grows, the company is adjusting its pricing, with price hikes expected to be steeper than initially anticipated.
In particular, TSMC’s high-end processes, which are used by tech giants like Apple and NVIDIA, are set to become even more expensive.
Goldman Sachs has forecasted that TSMC will raise the cost of its CoWoS and advanced node processes beyond previous projections, largely due to the strengthening of Taiwan’s currency. According to estimates, processes smaller than 5nm will experience a price bump of around 3%, while CoWoS might see an increase of 5%. However, the real increase could be even higher if TSMC decides to adjust for the currency appreciation and protect its profit margins.
Despite the price increase, TSMC’s clients, including major tech firms, have little choice but to comply. With the company’s dominance in the market and limited competition from companies like Intel and Samsung, TSMC is set to maintain a commanding position in the chip industry for years to come.
As the AI boom continues, TSMC’s role in providing the essential chips for next-gen tech is more critical than ever. The company is expected to capture over 75% of the global foundry market, securing its place as the primary supplier for Big Tech’s high-end needs. Analysts, including Charles Shi from Needham, predict that TSMC’s revenue could soar to $160 billion by 2027, driven by the surging demand for AI chips, further solidifying the company’s dominance in the semiconductor landscape.