Apple's chip supplier is Taiwan Semiconductor Manufacturing Company (TSMC). The rumored A16 Bionic of the iPhone 14 Pro and iPhone 14 Pro Max will be based on TSMC's 5nm process.
A TSMC supplier planning to raise prices of the apple products.
That likely means the chipmaker will pass the increase on to Apple. And Apple to us.
According to Bloomberg, Japanese chemical company Showa Denko KK expects to raise the prices of key chip-making materials as it faces a number of financial challenges, including supply issues caused by Covid, rising energy costs due to the situation in Ukraine, and the weakening of the yen. And at a time when 12 price increases have already taken place in 2022.
Toyo Securities analyst Hideki Yasuda believes that prices of durable goods such as electronics will likely rise due to these reasons. Why it's not just Showa Denko KK Financial challenges affect all chipmakers. And everyone in general.
According to a previous Bloomberg report, manufacturing costs for chip makers have risen by 20 to 30 percent on all fronts, including equipment, manufacturing materials, chemicals, natural gas, and wafers. As a result, chip prices could increase by up to 20%.
A recent report says that after last year's 20% increase, TSMC will increase prices by up to 8% this year. The extra cost will obviously not be absorbed by Apple itself, so the ball falls on the consumer.
0 Comments