TSMC to Raise Prices in the US

In a move that reflects the growing operational costs in the United States, Taiwan Semiconductor Manufacturing Company Limited (TSMC) is reportedly planning a substantial 30% price hike at its US foundries. This development, as reported by Digitimes on Wednesday, marks a significant shift in the semiconductor industry's pricing strategies.

Impact of US Operational Costs

The decision to increase prices is directly attributed to the higher costs of running operations in the US compared to Taiwan. This adjustment is seen as a necessary step for TSMC to maintain its profitability and operational efficiency in the face of escalating expenses.

Potential Ripple Effects

With the ongoing uncertainty surrounding US President Donald Trump's tariffs, major tech companies like Apple Inc. and Nvidia Corp., which frequently place orders with TSMC, might now be compelled to source semiconductors directly from TSMC's US factories. This could lead to broader implications for the tech industry's supply chain and pricing structures.