Skip to content

TSMC Lowers Its Chip Prices by Up to 30%: A Strategic Move or a Desperate Measure?

TSMC recently announced a surprising decision to cut the foundry price of its 8-inch wafers by up to 30%. This move comes amid a global chip shortage that has affected various industries, from smartphones to automobiles. Why did TSMC make this decision, and what are the implications for the chip industry and its customers?

One of the main reasons behind TSMC’s price cut is the sluggish demand for 8-inch wafers, which are mainly used for making chips for automotive, industrial, and consumer electronics applications. These sectors have been hit hard by the COVID-19 pandemic, which has disrupted supply chains and reduced consumer spending. As a result, TSMC and its invested company, Vanguard International Semiconductor Corporation, have faced excess inventory and low utilization rates for their 8-inch wafer fabs.

Another reason is the increasing competition from other chipmakers, especially in China, which have been ramping up their production capacity and offering lower prices to attract customers. For example, Semiconductor Manufacturing International Corporation (SMIC), China’s largest chipmaker, has reportedly lowered its 8-inch wafer prices by 15% to 20% in the second quarter of this year. TSMC’s price cut is seen as a defensive move to maintain its market share and customer loyalty in the face of these challenges.

The price cut by TSMC could have both positive and negative effects for the company and its customers. On the positive side, it could help TSMC clear its inventory and improve its cash flow. It could also benefit its customers, especially those in the automotive sector, which have been struggling with chip shortages and rising costs. TSMC’s lower prices could enable them to source more chips at a lower cost and pass on the savings to end consumers. This could also stimulate the demand for 8-inch wafers and boost TSMC’s revenue in the long run.

On the negative side, the price cut could hurt TSMC’s profitability and margins. It could also trigger a price war among chipmakers, which could erode their profits and hamper their ability to invest in advanced technologies. Moreover, it could create a perception that TSMC is losing its competitive edge and technological leadership in the chip industry. This could undermine its reputation and brand value among its customers and investors.

TSMC’s price cut is a bold and risky move that reflects the changing dynamics of the chip industry. It shows that TSMC is willing to adapt to the market conditions and customer needs, but also that it faces increasing pressure from its rivals and challenges from the external environment. TSMC has stated that it plans to invest $100 billion over the next three years to expand its production capacity and develop advanced semiconductor technologies. This indicates that TSMC is confident in its long-term prospects and committed to maintaining its leadership position in the chip industry. However, whether this strategy will pay off or backfire remains to be seen.

Share to your social below!

Tags:

109 thoughts on “TSMC Lowers Its Chip Prices by Up to 30%: A Strategic Move or a Desperate Measure?”

  3. DQqug.topchina.win
    Reply

    Hi tere I am sso happy I fopund yoiur blog page, I realy foynd you by accident, whilee I was searching
    on Digg for something else, Regardless I aam ere noow and woould juhst likme to say mny thanks foor a rwmarkable pist and a all round thrilling blogg (I also love the theme/design),
    I don’t have time to read thrrough iit all at
    thhe momentt but I have book-marked itt aand also addded iin your
    RSS feeds, soo wyen I have time I wikl bbe bck to reqd more, Please doo keep uup the excellent job.

  4. Michaela
    Reply

    I am genuinsly delkghted tto glannce at this web site posts which cohsists of lots oof usefull
    information,thanks for providinbg these data.

  5. y0.trendshub.xyz
    Reply

    I liuke tthe valuable innformation you provide iin your articles.
    I’ll boojmark yojr blog and chbeck again heere regularly.

    I’m quite certin I will learn plenty oof neww stuff right here!
    Goood lluck foor the next!

  6. Roberta
    Reply

    Hi there I am so thrilled I found your webpage, I really found
    you by accident, while I was looking on Google for something else, Anyways I am here now and would just like to say cheers for a remarkable post and a all round exciting blog (I also love
    the theme/design), I don’t have time to browse it all at the moment but I have book-marked it and
    also included your RSS feeds, so when I have time I will be back to
    read a lot more, Please do keep up the great work.

  7. Aisha
    Reply

    Excellent blog here! Also your site loads up very fast!

    What host are you using? Can I get your affiliate link to your
    host? I wish my website loaded up as quickly as yours
    lol

  8. Una
    Reply

    Pretty nice post. I just stumbled upon your blog and wanted to say that I’ve truly enjoyed surfing around your blog posts.
    In any case I’ll be subscribing to your rss feed and
    I hope you write again soon!

  9. Buck
    Reply

    Hello! Someone in my Facebook group shared this
    site with us so I came to give it a look. I’m definitely
    enjoying the information. I’m bookmarking and will be tweeting this to my followers!
    Great blog and outstanding design.

  10. Alexis
    Reply

    I all the time used to read post in news papers but now as I
    am a user of net thus from now I am using net for content, thanks to web.

  11. vpn coupon 2024
    Reply

    Excellent blog! Do you have any suggestions for aspiring writers?
    I’m hoping to start my own site soon but I’m a little lost on everything.
    Would you suggest starting with a free platform like WordPress or go for a paid option? There are so many choices out there that I’m totally overwhelmed ..
    Any recommendations? Thank you!

    Feel free to surf to my homepage :: vpn coupon 2024

  12. vpn coupon 2024
    Reply

    Definitely believe that which you said. Your favorite justification appeared to be on the web the easiest thing to be aware of.
    I say to you, I definitely get irked while
    people think about worries that they plainly do not know about.
    You managed to hit the nail upon the top and defined out the whole thing without having side-effects , people can take
    a signal. Will probably be back to get more. Thanks

    Also visit my web blog: vpn coupon 2024

  15. vpn special
    Reply

    Hi, i think that i saw you visited my site thus i came to “return the favor”.I’m trying
    to find things to improve my site!I suppose its ok to use
    some of your ideas!!

    Stop by my blog – vpn special

  16. vpn 2024
    Reply

    Heya i am for the first time here. I came across this board and I find It truly useful & it helped me
    out a lot. I hope to give something back and aid others like
    you helped me.

    Feel free to visit my webpage … vpn 2024

  17. Daina
    Reply

    Howdy! This post couldn’t be written much better!
    Reading through this article reminds me of my previous roommate!
    He always kept talking about this. I most certainly will forward
    this post to him. Fairly certain he will have a very
    good read. Thank you for sharing!

  22. Java Burn
    Reply

    Very interesting points you have remarked, thankyou for posting. “The surest way to get rid of a bore is to lend money to him.” by Paul Louis Courier.

  24. cbd
    Reply

    The crux of your writing while sounding agreeable in the beginning, did not sit very well with me after some time. Someplace within the sentences you were able to make me a believer unfortunately just for a very short while. I still have a problem with your leaps in logic and one might do well to fill in all those gaps. In the event that you can accomplish that, I could certainly end up being amazed.

  25. Fitspresso
    Reply

    After examine a few of the weblog posts in your website now, and I really like your approach of blogging. I bookmarked it to my bookmark website listing and shall be checking again soon. Pls check out my website online as well and let me know what you think.

  26. Liv Pure
    Reply

    Hey, you used to write great, but the last few posts have been kinda boring?K I miss your super writings. Past few posts are just a bit out of track! come on!

  28. amiclear
    Reply

    Very good written post. It will be supportive to anyone who utilizes it, as well as me. Keep up the good work – looking forward to more posts.

  29. phone hackers for hire
    Reply

    I have not checked in here for a while since I thought it was getting boring, but the last several posts are good quality so I guess I will add you back to my everyday bloglist. You deserve it my friend 🙂

  30. fitspresso
    Reply

    What Is FitSpresso? The effective weight management formula FitSpresso is designed to inherently support weight loss. It is made using a synergistic blend of ingredients chosen especially for their metabolism-boosting and fat-burning features.

  34. The Genius Wave
    Reply

    Hi, Neat post. There is an issue along with your web site in internet explorer, could test this?K IE nonetheless is the marketplace chief and a huge element of other folks will miss your great writing because of this problem.

  36. Lottery defeater review
    Reply

    Hello, i read your blog from time to time and i own a similar one and i was just curious if you get a lot of spam feedback? If so how do you stop it, any plugin or anything you can advise? I get so much lately it’s driving me insane so any support is very much appreciated.

  37. The Genius Wave
    Reply

    A formidable share, I just given this onto a colleague who was doing a bit analysis on this. And he in fact purchased me breakfast as a result of I discovered it for him.. smile. So let me reword that: Thnx for the treat! However yeah Thnkx for spending the time to debate this, I feel strongly about it and love studying more on this topic. If potential, as you become expertise, would you thoughts updating your blog with more details? It’s extremely helpful for me. Huge thumb up for this blog submit!

  67. Java Burn
    Reply

    Appreciating the persistence you put into your site and in depth information you offer. It’s nice to come across a blog every once in a while that isn’t the same out of date rehashed information. Fantastic read! I’ve bookmarked your site and I’m adding your RSS feeds to my Google account.

  68. hire a hacker for iPhone
    Reply

    Hiya, I’m really glad I’ve found this info. Today bloggers publish just about gossips and web and this is actually frustrating. A good blog with exciting content, that is what I need. Thanks for keeping this site, I’ll be visiting it. Do you do newsletters? Cant find it.

  74. Fitspresso reviews
    Reply

    you are really a good webmaster. The site loading speed is incredible. It seems that you’re doing any unique trick. Furthermore, The contents are masterwork. you’ve done a great job on this topic!

Leave a Reply

Your email address will not be published. Required fields are marked *

Request Quote
Request one quote by partnumbers or upload a BOM, we will get back to you soon!

    Request Quote
    Request one quote by partnumbers or upload a BOM, we will get back to you soon!