Key Takeaways
1. TSMC is raising chip prices by up to 10% for 5 nm chips starting in 2026, affecting Apple devices.
2. TSMC manufactures key processors for Apple, including the A15, A17, A18, A19, A20, and upcoming M3, M4, and M5 chips.
3. The cost to produce new 2 nm chips may reach $280 per unit, significantly higher than the $45 per unit for current 3 nm chips.
4. Rising chip prices are causing industry-wide concerns as manufacturers shift focus to high-bandwidth memory (HBM), leading to shortages and increased costs for smartphone components.
5. Smartphone manufacturers are now spending 16% of their bill of materials on memory, up from 10% the previous year, impacting device pricing strategies.
Apple enthusiasts might soon find themselves shelling out more cash for their devices, as one of its major manufacturing partners is said to be raising chip prices. As per insider Yeux112, TSMC has informed its clients, including Apple, that producing chips under 5 nm will see a price increase of up to 10 percent starting in 2026.
Key Components Affected
This Taiwanese firm is responsible for many of the processors found in Apple’s current and future iPhones, iPads, and Macs, such as the A15, A17, A18, A19, and A20. TSMC is also set to deliver the M3, M4, and M5 chips.
Cost of New Technology
A report by China Times suggests that the forthcoming 2 nm node could be the most costly to produce. The publication projected a per-unit price of as much as $280. In contrast, the current-generation 3 nm A-series is estimated to cost around $45 per chip.
Concerns Over Rising Prices
The increasing chip prices have raised alarms throughout the industry. Chip manufacturers are capitalizing on the AI boom and are redirecting their attention and resources toward high-bandwidth memory (HBM). This shift is leading to a shortage of mobile-grade LPDDR5x RAM, which in turn is escalating costs for smartphone components.
Impact on Smartphone Manufacturers
Goldman Sachs recently projected that smartphone makers are now allocating 16 percent of their bill of materials (BOM) towards memory, up from 10 percent the previous year.
If the recent claims about TSMC hold true, Apple might be left with no option but to raise the prices of its forthcoming devices. Alternatively, the company based in Cupertino may decide to take a hit on profit margins by absorbing some of the increased sourcing expenses.
Source:
Link
Leave a Reply