There’s no doubt that Taiwan’s TSMC is the “near epitome” of human knowledge in terms of semiconductor manufacturing and not even big names from the US, China, and Korea are worthy to give them a run for their money.
Even if TSMC has announced they are raising the prices of their fabrication service, everyone is still piling onto the company placing orders like nobody’s business.
But why and how? Liberty Times Net‘s recent coverage of the topic might have shed some light.
The article quotes sources from BusinessKorea and states that world-leading companies like NVIDIA, Apple, and Qualcomm are not evaluating cost as the priority but rather, high yield rates, and the latest and most advanced process node available right now is what they are aiming for.
As a result, there would be no orders canceled despite TSMC having informed them that prices are going up. NVIDIA CEO Jensen Huang is all head to toe when it comes to supporting the Taiwanese firm and even confirms that aforementioned parties like Apple, Qualcomm, and among other big companies are fine with the price hike.
It is further reported that orders for the 3nm process node from the “big 3” plus AMD, etc, are queued all the way until the end of 2026. Companies are not really giving the 5% raise for 3nm manufacturing and 10%-20% UP for CoWoS packing technology a damn.
Thanks to the immense demand for AI accelerators and whatnot, this has caused the already lacking supply from the sole provider of TSMC to potentially raise prices even more in the future.
Aside from showing the true dominance of “Taiwan No.1” in the market, it also shows the “bad side” of things as in Samsung (since the report came from the Korean media, of course they’ll talk about it).
Even though they projected the TSMC price hike to shift orders toward the Korean giant, it is the opposite. If the trend continues, the Taiwanese firm might be able to keep the ball rolling by increasing its revenue stream and then using it to accelerate development on the next-gen manufacturing process, thus creating an “unbreakable” cycle.
At the time of writing and according to one industry expert from Korea, Samsung has not yet received any 2nm and 3nm orders from any big clients and quotes “Samsung needs to utilize its Gate-All-Around (GAA) architecture to attract orders as soon as possible”.
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