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The news comes that TSMC will face rising costs before next year – Fast Turn Chip

According to Digitimes, TSMC has confirmed that prices for most manufacturing processes will fall by around 6% starting in January 2023, but some have recently worried that demand in many end markets in the second half of 2022 may be dismal, Many optimistic design firms are deeply optimistic about their sales prospects beyond the end of the year, as orders from branded equipment suppliers plummet amid dwindling macro uncertainty. However, the person pointed out that TSMC and other pure-play OEM companies in Taiwan, China, are scheduled to record a new high in revenue in 2022.

TSMC will face rising costs before next year

The person claimed that orders from TSMC and other major customers of the Taiwanese fab have not increased significantly, and customer orders are expected to still account for more than 95% of production capacity by the end of this year. The Taiwanese OEM is also mainly looking to reduce production capacity as it has signed long-term order commitments with customers. In addition, rising raw material and labor costs, coupled with rising electricity costs, put pressure on OEMs to further increase their bids. (Electronic Components Purchasing Network)

The person further claimed that the extended lead time of semiconductor equipment has also plagued the capacity expansion of global fabs. Lead times for fab equipment have shrunk to 30 months with no sign of an uptick. The arrival of new OEM capacity over the next two years may be higher than they expected due to delays in equipment additions. (Electronic Components Purchasing Network)

About Electronic Components Distributor FAST TURN CHIP

FAST TURN CHIP is a B2B electronics contract manufacturer with multiple sourcing points for electronic components. We can source and purchase hybrid electronic components and integrated circuits at competitive prices to meet customer needs. No matter what components you want, no matter how many, you can buy them from Fast Turn Chip at reasonable prices and traceable quality.

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