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News hardware & software 26 August 2021, 15:21

author: bachehe

New GPU and CPU Price Increases Possible

Reports from Taiwan suggest that processors and graphics cards may become more expensive again in the near future.

TSMC, or Taiwan Semiconductor Manufacturing Company, is a Taiwanese company that manufactures integrated circuits, including processors. TSMC is a world leader, cooperating with the biggest technological giants. At the end of the year, the company will raise prices of components, which is likely to affect the entire industry, and in the longer term, also the gamers.

According to DigiTimes, prices of 7 nm chips will increase by up to 10%.. A greater increase will affect components in older technological processes (16 nm and above). Their prices will increase by up to 20%. The effects of increased manufacturing costs are likely to be seen as early as next year.

New GPU and CPU Price Increases Possible - picture #1
Silicon wafers are now a strategic resource. The huge demand means that TSMC can dictate terms. Source: fabersam/Pixabay.

The price increase will improve TSMC's financial situation. It is possible to increase the company's revenue by even USD 1 billion. However, this situation can be quite a challenge for companies that source their supplies from the Taiwanese chip manufacturer. As noted by Tom's Hardware, Apple has such high margins that higher component prices do not necessarily entail a price increase. However, other manufacturers, such as AMD and Qualcomm, may have to pass on at least some of the cost to consumers.

TSMC isn't the only company changing the prices of its products. GlobalFoundries, Powerchip Semiconductor Manufacturing (PSMC), Semiconductor Manufacturing International (SMIC) and United Microelectronics (UMC) have also increased their technology costs in response to increased demand.

In March, there were rumors about TSMC increasing product prices by up to 25%. Now we know that the prices will indeed increase, but not as much as it seemed. However, this is hardly a cause for celebration.

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