TSMC cancels bulk discounts for major customers, which could lead to higher prices for final products

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Last updated on December 8th, 2022 at 02:40 pm

Discount received by Apple, Nvidia, AMD, and other large customers

Citing a report from the Taiwanese Central News Agency, the source claims that Taiwan Semiconductor Manufacturing Company (TSMC), the largest semiconductor contract manufacturer, is discontinuing volume discounts. Previously, the company gave its largest customers a 3% discount when ordering tens of thousands of 300mm wafers or more per month. Apple, Nvidia, AMD, and other large customers received the discount.

TSMC
TSMC

TSMC cancels bulk discounts for major customers, which could lead to higher prices for final products

Now everyone will pay the full cost. It is not yet clear what led to this decision, but the source suggests that this is due to the high demand for contract manufacturing. In addition, TSMC has the most advanced technical processes, producing products at 7nm and 5nm.

For consumers, this means a possible increase in prices for final products that use TSMC chips. However, the 3% increase does not look catastrophic given the difference between the recommended prices for the latest processors and graphics cards and the prices at which these products are sold by speculators, taking advantage of high demand and scarcity.

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