"I am really jealous about memory companies' 86% gross margin," said C.C. Wei, chief executive of TSMC, during the company's earnings call with financial analysts and investors. "86% [margin at memory makers] – 68% [margin at TSMC], I will be happy about that."
TSMC rarely comments on its prices to a large degree because they vary based on volumes and relationship with a particular client. Nonetheless, the head of the company stressed that the company has no intentions to increase prices suddenly or dramatically.
"So we do not suddenly increase our price by which I like to have 4x or 5x," Wei said. "You cannot survive for that kind of… for your customer to survive for that kind of price increase. So we earn our value, and we make sure that our profit, our gross margin, is enough for our long-term sustaining expansion, that is to the benefit of my customers and TSMC also, that is our philosophy."
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Anton Shilov is a contributing writer at Tom\u2019s Hardware. Over the past couple of decades, he has covered everything from CPUs and GPUs to supercomputers and from modern process technologies and latest fab tools to high-tech industry trends. ","collapsible":{"enabled":true,"maxHeight":250,"readMoreText":"Read more","readLessText":"Read less"}}), "https://slice.vanilla.futurecdn.net/13-4-25/js/authorBio.js"); } else { console.error('%c FTE ','background: #9306F9; color: #ffffff','no lazy slice hydration function available'); } Anton Shilov Social Links Navigation Contributing Writer Anton Shilov is a contributing writer at Tom’s Hardware. Over the past couple of decades, he has covered everything from CPUs and GPUs to supercomputers and from modern process technologies and latest fab tools to high-tech industry trends.
hotaru251 So…do people still doubt next gen consoles are not going to be $1000 + yet? Reply
usertests hotaru251 said: So…do people still doubt next gen consoles are not going to be $1000 + yet? SoC/chiplet costs are negligible compared to the DRAM and NAND. If those go down, we can see relief. If not, it's the new normal. Reply
daworstplaya This is all thanks to AI and massive demand on semi-conductors. The AI bubble can't pop soon enough. Reply
TechieTwo Yup the DRAM financial greed will definitely hurt the industry as a whole. Reply
Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/tech-industry/semiconductors/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/semiconductors/tsmc-eyes-price-hikes-of-up-to-25-percent-on-chip-production-services-in-2027-report-claims-plans-to-raise-baseline-prices-by-5-percent-to-10-percent-on-advanced-nodes#main
- https://www.tomshardware.com/subscription
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Informational only. No financial advice. Do your own research.