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does not accept the price increase in its chips for 2023

If this morning we commented on the reasons for the price increase of the NVIDIA RTX 40 graphics cards From the mouth of your own CEO, we now have a new chapter in the saga of chip price hikes. Since demand skyrocketed and supply fell to a minimum, the chip industry has faced huge investments that are now being paid for. But for the first time a company has stopped a giant like TSMC, Manzanawhich does not accept the price increase of the chips by 2023.

We cannot deny that the chips have been paid for at the price of gold, but many industries have seen how the demand plummets and with this they are having to offer different discounts to be able to remove the stock and not enter into more losses. When you are a giant everything changes, supply and demand fluctuate differently and you can afford a give and take as two TOP companies in the sector are doing now.

Apple stands with TSMC and the price increase

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Taiwanese are also seeing how demand is falling. Fewer orders arrive from all over the globe and the investment has been mammoth. So lower overall volume, higher price per wafer, and this is what it has conveyed to Apple, that although sales of iPhone 14 going well is hit by the rest of the industry, since the demand is general.

For this reason, it is reported that TSMC informed those of Cupertino about a price increase in order to start 2023 with extra costs, which are unknown, but which must be considerable when those of the bitten apple have been planted dry rejecting the TSMC application.

The problem is that two semiconductor titans are colliding here, one for manufacturing and distribution and the other for desEsports Extrasand sales. How is this mess going to be resolved?

Apple has already won the first battle, will it be able to with the second?

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In the midst of the semiconductor crisis, TSMC announced an increase of between 10% and 20% of the price of its wafers for all customers, where depending on the total volume it would apply one increase or another. Well, Apple being almost the 50% of TSMC sales He had a minimum raise percentage of 3%, so he has a lot of the upper hand in the game.

As it has not been revealed how much rise TSMC plans on its chips, it is to be expected that the other manufacturers are screaming in the sky again and that many, by pure logic, are knocking on the doors of Intel or Samsung to know the processes lithographic Intel 4 and Samsung N3GAAwhere above all what matters are their monthly volumes and their prices.

Apple will not go beyond TSMC, because it is the only one that can supply it with that volume, but it will negotiate hard and if it does not obtain the prices it stipulates, it may end up looking like the others, but companies like Qualcomm, MediaTek or Intel itself for its TGPU they may end up thinking twice before signing more contracts, because another increase of 10% or 20% would end up bursting the little market that remains standing.

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