After Apple rejected a price increase from its main chip supplier TSMC last week, the company has now apparently changed course and accepted the price increase for next year.
From January 1, 2023, TSMC plans to increase the price of 8-inch chip wafers by 6 percent, while 12-inch wafers will become more expensive by 3 to 5 percent. Economic Daily News had previously reportedthat Apple would not accept the price increase. But now it says the company has agreed to cover the costs. TSMC's material suppliers have been forced to raise their prices dramatically due to the global chip shortage. Other component makers and material suppliers in the semiconductor industry have also taken similar steps in the face of general price pressures. In May, Bloomberg reported that TSMC was about to warn its customers of a significant price increase. This came after a hefty 20 percent price increase in 2021, the biggest chip price increase in a decade.
Production of 3nm chips for Apple should start soon
Last year, there was speculation that Apple might have to raise device prices to offset the significant increase in chip prices. TSMC produces the A-series chips for the iPhone, iPad, and Apple Silicon chips for the Mac. The foundry is expected to begin producing 3nm chips for Apple by the end of 2022. Apple's first 3nm chip could be the M2 Pro chip for Macs, while the A17 Bionic chip in the iPhone 15 Pro models is also expected to be a 3nm chip. Apple's move to 3nm chips will lead to further improved performance and power efficiency in upcoming Macs and iPhones as Apple looks to maintain its lead in performance per watt over rivals like Intel, even if that means paying higher prices and potentially passing the costs on to consumers. (Photo by Andrey Suslov / Bigstockphoto)
