TSMC is Increasing Prices of Silicon Chips Used in Cars Around The World

With the COVID-19 pandemic, the supply chain for many industries specifically the tech industry has been majorly affected rendering a shortage of many key components.

One of the main parts of the global tech industry that has substantially suffered is the chipset industry. Due to lower production and ever-increasing demand, chipset prices are soaring.

Many chipset makers have been raising the prices of smartphone CPUs. TSMC, the world’s leading contract manufacturer for chipsets, is planning on doing the same to its automotive chips unit in the wake of a global shortage of components.

According to a recent report, the company’s automotive chipset unit, Advanced Integrated Circuits (VIS), is considering increasing the prices of its chipsets by up to 15 percent which is a lot and will definitely cause a rise in the prices of the final product. Unfortunately, other foundries are also looking to do the same.

In case TSMC and other foundries go forward with their plan, this will be the second round of price increases since last fall. Experts believe that the price increase plan will take effect sometime at the end of February or early March.

Decisions like these, no matter how small they may seem to the layman, have great repercussions. Soaring prices of key components like the automotive chipsets will lead to an overall increased price of the smart car. This will in return slow down the pace of adoption of electric vehicles.

In other news, the Korean smartphone maker Samsung has partnered with Tesla to work on developing a new 5nm EUV chip for autonomous driving.