TSMC has cancelled 12-inch foundry discounts to OEMs

As previously reported the production capacity of 8-inch wafer foundries is tight and the delivery time is prolonged. The foundries are considering increasing the foundry offer in 2021. Price hikes in disguise, news that TSMC has canceled 12-inch foundry discounts: Apple, AMD, Nvidia, etc. are affected

Judging from the latest reports, the price increase of foundry has extended from 8-inch wafers to 12-inch wafers. There has been news that TSMC has canceled the 12-inch foundry discount and increased prices in disguise.

According to a report, TSMC previously offered a discount of about 3% when OEM 12-inch wafers for major customers, but in 2021, they will cancel this discount, and the cancellation of the price discount will mean major customers’ OEM costs will therefore rise.

In the report, it was mentioned that TSMC’s 12-inch foundry customers, including manufacturers such as Apple, AMD, and Nvidia, would cancel the discounts as reported, and these manufacturers’ foundry prices at TSMC would Rise, and then compress their product profit margins or push up product prices.

TSMC is the world’s largest chip foundry and a leading manufacturer in process technology. It currently has six 12-inch super-large fabs.

Although TSMC has a number of 12-inch ultra-large fabs, the electronic product market is booming, which puts greater pressure on TSMC’s foundry production capacity, and their advanced manufacturing capacity is currently not surplus. Apple’s self-developed chips are all handed over to TSMC using the most advanced technology foundry. AMD’s latest 7nm products are difficult to stock in retailers.