TSMC hikes chip prices up to 20% amid supply shortage(asia.nikkei.com)
asia.nikkei.com
TSMC hikes chip prices up to 20% amid supply shortage
https://asia.nikkei.com/Business/Tech/Semiconductors/TSMC-hikes-chip-prices-up-to-20-amid-supply-shortage
596 comments
Supply shortage is another way of saying demand excess. I don’t see much evidence that TSMC ever really slowed production, at least for their most advanced processes that are in high demand.
This is yet another way we’re all forced to pay the price for cryptocurrency. As long as GPUs are profitable for mining, they will be purchased and put to work. The saddest part is that each additional GPU added to the mining networks only makes the overall system less efficient. Mining difficulty is automatically adjusted upward to cancel out the additional computing power. The networks processed just as many transactions last year as they do now, but countless new GPUs have been added to the mining network due to the incentive structure of mining. It’s a race to the bottom, consuming ever more GPUs and energy until equilibrium is reached.
It’s frustrating to watch so much of the output of our most advanced chip manufacturing be diverted straight into making arbitrary proof-of-work systems less efficient so someone can capture incrementally more coins. And now we must all pay higher prices for everything.
This is yet another way we’re all forced to pay the price for cryptocurrency. As long as GPUs are profitable for mining, they will be purchased and put to work. The saddest part is that each additional GPU added to the mining networks only makes the overall system less efficient. Mining difficulty is automatically adjusted upward to cancel out the additional computing power. The networks processed just as many transactions last year as they do now, but countless new GPUs have been added to the mining network due to the incentive structure of mining. It’s a race to the bottom, consuming ever more GPUs and energy until equilibrium is reached.
It’s frustrating to watch so much of the output of our most advanced chip manufacturing be diverted straight into making arbitrary proof-of-work systems less efficient so someone can capture incrementally more coins. And now we must all pay higher prices for everything.
1. This is specifically mainstream node, or everything except leading edge 3nm / 5nm.
2. Those price has been like that for sometime since the chip shortage. They just make it official now.
3. The mainstream and social media will and always have been blaming it on TSMC.
4. Everyone wants all the capacity they need, while not paying a cent more. This announcement will "somehow" made it fair for everyone in the industry.
5. The current component price has very little to do with wafer pricing. As with all commodity pricing, they will only swing back once supply catches up.
6. In general I think this is a good, TSMC has been leaving far too much money on the table and benefiting GF and SMIC.
2. Those price has been like that for sometime since the chip shortage. They just make it official now.
3. The mainstream and social media will and always have been blaming it on TSMC.
4. Everyone wants all the capacity they need, while not paying a cent more. This announcement will "somehow" made it fair for everyone in the industry.
5. The current component price has very little to do with wafer pricing. As with all commodity pricing, they will only swing back once supply catches up.
6. In general I think this is a good, TSMC has been leaving far too much money on the table and benefiting GF and SMIC.
Gosh I wish Apple with their loads of cash and drive to have the highest performing chip would get big ole fabs on US and EU shores. The fact that a disputed country owns the best fabs is downright scary for the future of the world (add in that the disputing country is the next superpower).
My PC is 11 years old this year. I've been waiting to upgrade it for 2 years but held off because GPU prices are utterly ridiculous.
I don't know who can afford these inflated prices, I was hoping things would settle but it doesn't appear to be the case.
I don't know who can afford these inflated prices, I was hoping things would settle but it doesn't appear to be the case.
Forgive the naive question but why doesn't the US government fund several foundries in the US immediately? $20B over 3 years is a drop in the bucket compared to a lot of military spending and these chip shortages surely have downstream impact on the defense industry, no?
At this point I'd be much happier subsidizing chip manufacturing than most of the other ways this country spends money overseas.
At this point I'd be much happier subsidizing chip manufacturing than most of the other ways this country spends money overseas.
Supply shortages are the excuse du jour, but so long as TSMC has the kingmaking node I expect it to become expensive. Very expensive. Expensive enough to move margin from the king their node made right back to TSMC.
Bitfinex (which has been outlawed in the USA) keeps printing Tether to prop up the price of Bitcoin, graphics cards are snatched up as soon as they are manufactured, and they're using an Argentina-sized amount of power to keep the whole thing going. Yes, it works, but no one on earth will ever use these Bitcoins to buy two pizzas ever again. What's the end-game, at this point? As many bagholders as possible?
Starting to get the feeling that the current prices for PC components are here to say.
The chip shortage is interesting to me. In that it seems to be mostly driven by bad forecasting both by clients and the foundries. But the foundries seem to get nothing but upside out of it. Perhaps it swings next time and there's excess capacity.
Thank you cryptominers for everything you did for the mankind, especially huge GPU prices and insane air pollution caused by your mining farms.
Theoretically that will spawn some real competition which is sorely needed. In reality fabs are hard to spin up, but this does draw attention to the matter.
Wonder whether that impacts contracts like Apple's where they bought out all of the initial 3nm production that TSMC can manage more than a year ago.
If not that means that Apple will have a competitive advantage on price with other manufacturers that utilize TSMC.
If not that means that Apple will have a competitive advantage on price with other manufacturers that utilize TSMC.
This reminds me of the early days of 2007, when the strange rumblings of the economy were starting to take place.
If everyone starts raising prices by 20%, will governments be able to spend money fast enough?
Maybe we are about to learn that you can’t stimulate every economy in the world simultaneously.
If everyone starts raising prices by 20%, will governments be able to spend money fast enough?
Maybe we are about to learn that you can’t stimulate every economy in the world simultaneously.
Goodbye dreams of owning an Nvidia GPU in 2022 - I ain't paying cutthroat prices on ebay/amazon.
Guess we're buying Intel!
Sidenote: Intel manufacturers their own stuff, and so is Apple right? Their new cool chips are all in-house or are they through TSMC?
Sidenote: Intel manufacturers their own stuff, and so is Apple right? Their new cool chips are all in-house or are they through TSMC?
Intel was stupid. They could have become a foundry 20Y ago like every other chip making company on Earth but they chose instead to greedily try and make cell phone chips three times and they failed all three times at the cost of many many billion dollars! And now nobody really wants their chips and AMD chips are selling like hot cakes using up all The foundry resources while intel chip manufacturing lines stand idle, and useless because Intel thought they would be on top forever!
At the moment, we'd pay several X over price versus not being able to find needed ICs at all and having to redesign our satellite for ones that are available.
Good. If they keep making huge profits then others will invest in factories to get in on the action.
Market forces at play. Good on them. Move along, nothing to see here.
Would anyone else on here be willing to pay money for a data feed that showed you real-time measures of semi manufacturer capacity?
I keep seeing this number again and again. 20%. Sometimes 25%. Sometimes 15%. Usually no lower than any of the three.
"up to" makes the article worthless. To be fair I guess most chips usually fall in price over time.
thats gauranteed inflation in everything then. GG fed. good job powell
I was told the inflation was temporary. This doesn’t sound temporary!
Designers are getting overwhelmed because they're having to redesign boards for components that are available, only to realize by the time they finish the changes, the part they redesigned for is also out of stock.
There's been some talk of a Chip-induced cold war, and I would say that's not crazy given the market conditions. I also love the guy who posts here all the time saying he works for the company that makes the machines that makes the chips and they can't make more machines because they don't have the chips that go in them. XD