TSMC Clients To Bargain Over Foundry Prices

Taiwan Integrated Circuit design houses look to renegotiate with Taiwan Semiconductor Manufacturing Company Ltd TSM on foundry prices for 2023, the Digitimes Asia reports.
They aim to press the critical Apple Inc AAPL supplier to halve its quote hike to 3% for mature processes like 45 nm and 28nm nodes to ease cost pressure amid a lagging macro-economic environment.
Earlier in May, TSMC warned clients for the second time after August against its plans to raise prices, to beat inflation concerns and rising costs, and its expansion plans to counter the global supply crunch.
The price increases will be 5% - 8% for different process technologies, from cutting-edge to legacy nodes, making products from advanced processors, connectivity chips, and sensors to microcontrollers and power management ICs.
Given the slowing demand for products like smartphones and PCs, it might be difficult for clients to accept TSMC's planned price hike fully.
Intel Corp INTC also followed suit.
Recently, TSMC slowed down its expansion plans for 3-nm, leading to Apple being the one company among the first wave of 3-nm process clients from 2H22 to the start 2023.
Analysts saw products using more advanced chips like GPUs (graphics processing units) and high-end CPUs (central processing units) going up in price, unlike smartphones which saw lower demand.
Price Action: TSM shares traded lower by 1.86% at $85.67 on the last check Monday.