Taiwanese chip manufacturer TSMC is prepared to raise the cost of chip production by 15% of its current cost for all the chips it makes. The potential action, as you can imagine, is a response to US President Trump’s ongoing tariff implementation.
Taiwanese news portal, Commercial Times, says reports that TSMC is prepared to raise the manufacturing prices of its chips, starting with it’s 7nm process first. At current, it costs US$10,000 (~RM44,305) for the production of such chips, while the more advanced 3nm costs US$18,000 (~RM79,749) per wafer. Should the Trump administration implement tariffs, the price of making 3nm chips could raise between US$20,000 (~RM88,610) and US$23,000 (~RM101,901).
Trump slapped fresh tariffs on the countries of Canada, Mexico, and China. Both neighbouring US countries were hit with a 25% tariff, while China was hit with 10%. However, the tariffs for Canada and Mexico were out on pause at the last minute, after both countries made last minute deals with the superpower, promising to increae and tighten security at their respective borders.
Another round of tariffs is expected to be announced by Trump on 18 February and while we know the EU is next on his list, it isn’t likely that the rest of the world will be spared. Of course, one of the solutions proposed to major manufacturers is to set up facilities and production plants on US soil. An act that TSMC technically already has committed to, with it’s Arizona plant.
For now, the Taiwanese chip giant is crossing it’s fingers, and the world’s just waiting with bated breath.
(Source: Commercial Times, Techspot)
