The chip shortage is interesting to me. In that it seems to be mostly driven by bad forecasting both by clients and the foundries. But the foundries seem to get nothing but upside out of it. Perhaps it swings next time and there's excess capacity.
TSMC hikes chip prices up to 20% amid supply shortage
11–20 of 620 posts
Re: TSMC hikes chip prices up to 20% amid supply shortage
#12Starting to get the feeling that the current prices for PC components are here to say.
My guess is also that the age of high-end graphics cards for 500€/$ has come to an end. Going to order a 3070 for 850€ now, after waiting for months
I am in need of an upgrade but having a harder and harder time justifying the expense for what is a hobby.
I guess eventually my system will be old enough that I will be better off just ordering a prebuilt, where I'll get gouged a bit overall but not by some insane amount just for a GPU
Re: TSMC hikes chip prices up to 20% amid supply shortage
#13Earlier quoted context omitted.
My guess is also that the age of high-end graphics cards for 500€/$ has come to an end. Going to order a 3070 for 850€ now, after waiting for months
I am in need of an upgrade but having a harder and harder time justifying the expense for what is a hobby. I guess eventually my system will be old enough that I will be better off just ordering a prebuilt, where I'll get gouged a bit overall but not by some insane amount just for a GPU
Price of pre-built will reflect the price for components. So if the GPU price increases, so will the pre-built price.
Re: TSMC hikes chip prices up to 20% amid supply shortage
#14Wonder whether that impacts contracts like Apple's where they bought out all of the initial 3nm production that TSMC can manage more than a year ago. If not that means that Apple will have a competitive advantage on price with other manufacturers that utilize TSMC.
MacRumors reports this may increase the price of the next iPhone - https://www.macrumors.com/2021/08/26/iphone-13-price-increas...
Lots of “reportedly”, “may”, “could” in there, of course.
(I’m linking that article since the original DigiTimes article is paywalled, and this article quotes from it.)
Re: TSMC hikes chip prices up to 20% amid supply shortage
#15The chip shortage is interesting to me. In that it seems to be mostly driven by bad forecasting both by clients and the foundries. But the foundries seem to get nothing but upside out of it. Perhaps it swings next time and there's excess capacity.
I wonder if food shortages are possible for the same reasons.
Re: TSMC hikes chip prices up to 20% amid supply shortage
#16"up to" makes the article worthless. To be fair I guess most chips usually fall in price over time.
Re: TSMC hikes chip prices up to 20% amid supply shortage
#17The chip shortage is interesting to me. In that it seems to be mostly driven by bad forecasting both by clients and the foundries. But the foundries seem to get nothing but upside out of it. Perhaps it swings next time and there's excess capacity.
I've heard the industry is full of exaggerated orders now to, everyone ordering more than they need, to see what they can get. Not a great way to have efficient trade.
Re: TSMC hikes chip prices up to 20% amid supply shortage
#18Wonder whether that impacts contracts like Apple's where they bought out all of the initial 3nm production that TSMC can manage more than a year ago. If not that means that Apple will have a competitive advantage on price with other manufacturers that utilize TSMC.
There are contracts for years and years ahead so I doubt current price changes will impact Apple or any other major client.
Contracts are what they are, but they don't preclude discussions like "if we honor this as-is, it leads to a situation where we have no incentive to value you as a customer".
Re: TSMC hikes chip prices up to 20% amid supply shortage
#19Wonder whether that impacts contracts like Apple's where they bought out all of the initial 3nm production that TSMC can manage more than a year ago. If not that means that Apple will have a competitive advantage on price with other manufacturers that utilize TSMC.
MacRumors reports this may increase the price of the next iPhone - https://www.macrumors.com/2021/08/26/iphone-13-price-increas... Lots of “reportedly”, “may”, “could” in there, of course. (I’m linking that article since the original DigiTimes article is paywalled, and this article quotes from it.)
That might be the reason for rumours of higher storage (1tb). An excuse to charge 30% more to not only offset increased costs but to increase profit margins.
Re: TSMC hikes chip prices up to 20% amid supply shortage
#20The chip shortage is interesting to me. In that it seems to be mostly driven by bad forecasting both by clients and the foundries. But the foundries seem to get nothing but upside out of it. Perhaps it swings next time and there's excess capacity.
There are some reports of collapsing lumber prices, when everyone was talking about the sky falling and prices skyrocketing two months ago. https://financialpost.com/commodities/lumber-prices-collapse... So your idea that semiconductor prices might fall a lot in the future seems reasonable.