TSMC (Taiwan Semiconductor Manufacturing Co) has informed customers of up to 10% increase in production prices for 7-nanometer chips and up to 20% for chips made in 16-nanometer and larger technologies, according to Apple Insider. Among these customers, Apple, which relies on TSMC for the production of chips like the A14 Bionic, manufactured according to the 5 nanometer process of the Taiwanese giant.

Possible price hike in sight?

TSMC has announced a price increase of up to 10% on chips made in processes down to 7 nanometers. In Apple’s case, it has solutions like the A14, which is made in 5 nanometers or the M1 itself, the first computer chip that is also made in 5 nanometers.

Two scenarios are possible: that Apple absorbs the increase in the price, or that there is a slight increase in these to maintain the margins.

It is not yet known whether this change will lead to an increase in the prices of Apple products, given the additional cost that the use of new TSMC technologies will now have. It would be understandable to protect its profit margins, although it cannot be excluded that Apple absorbs the impact of this increase and continues to keep prices stable.

The TSMC movement is intervening in the midst of the semiconductor crisis, which is already claiming victims in other sectors such as the automotive industry. According to the sources, the price increase is driven by strong demand in the semiconductor industry.

Regarding distribution issues, Apple plans to develop a new program to improve the supply chain. Following Tim Cook and Joe Biden’s meeting with executives from other tech companies such as Google, Amazon and Microsoft, Apple said it would work with its vendors to improve security across its entire business chain. ‘supply.