On November 2, it was reported that according to the latest report from Morgan Stanley, semiconductor giant TSMC is considering increasing the prices of its highly demanded 3nm process and CoWoS advanced packaging technology to meet huge demand.
TSMC plays a crucial role in the manufacturing of high-performance computing chips and cloud AI chips, with significant market demand for its cutting-edge processes and advanced packaging technologies. Major AI chip manufacturers like NVIDIA and AMD heavily rely on TSMC’s 3nm process and CoWoS technology. Therefore, meeting the vast demand from the market has become a challenge for TSMC. Ctee has revealed that TSMC plans to raise prices for its 3nm and CoWoS offerings, stating that this move will help maintain supply chain balance.
Reports indicate that TSMC plans to implement price increases in 2025 and has already received approval from NVIDIA, meaning the eventual price changes will impact the entire supply chain. It is said that TSMC’s 3nm pricing is expected to rise by up to 5%, while CoWoS packaging could see increases of 10% to 20%, depending on how TSMC expands its advanced packaging capacity.
The future looks bright for TSMC, as the company not only “monopolizes” the high-end semiconductor market but also benefits from the immense demand in the AI sector. Some of TSMC’s production capacity for next year has already been booked. Supply chain bottlenecks are forcing the company to expand its existing capacity, which will also lead to price increases.
Morgan Stanley’s previous report also indicated that TSMC’s gross margin is expected to soar in 2025, ultimately translating into robust earnings for the company.
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