Foundries have raised prices in the past five quarters, and their offers have reached record highs, sources at IC design firms said. Currently, these foundries intend to freeze offers and are unlikely to lower their offers.
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While TSMC has not commented on its pricing details, CEO Wei Zhejia said recently during a question-and-answer session on the company’s earnings call that there are no plans to cut prices even in a downturn, according to Digitimes.
In response to whether TSMC will adjust prices again this year to reflect market dynamics, Wei Zhejia said: “Our pricing strategy is strategic, not opportunistic or short-term, and customers understand our efforts to support their growth.”
Foundry sources said orders for industrial and automotive chips were quickly filling up factory capacity previously occupied by orders for consumer electronics equipment. The overall foundry market remains a seller’s market, the sources said.
Meanwhile, IC design firms are under pressure to cut chip prices as an unfavorable macro environment is weighing on demand for personal computers and other consumer electronics as they brace for a hit to profitability this year, the sources said.
