Tuesday, June 18th 2024
TSMC Thinking to Raise Prices, NVIDIA's Jensen Fully Supports the Idea
NVIDIA's CEO Jensen Huang said on June 5th that TSMC's stock price is too low, and he agrees with new TSMC chairman C. C. Wei's idea about TSMC's value. Jensen promised to support TSMC in charging more for their wafers and a type of packaging called CoWoS. An article from TrendForce says that NVIDIA and TSMC will talk about chip prices for next year, which could help TSMC make more money. Jensen also said he's not too worried about problems between countries because Taiwan has a strong supply chain; TSMC is doing more than just making chips, they're handling many supply chain issues too.
Last year, many companies were waiting for TSMC's products, ever-increasing demand and production issues causing delays. Even though things got a bit better this year, there's still not enough supply. TSMC says that even making three times more 3-nanometer chips isn't enough, so they need to make even more. NVIDIA's profits are very high, much higher than other companies like AMD and even TSMC. If TSMC raises prices for these advanced processes, it won't hurt NVIDIA's profits much, but it might lower profits for other companies like Apple, AMD, and Qualcomm. It will also have an impact on end-users.
Updated on Jun 18
According to a report by Commercial Times, TSMC's 3 nm capacity is fully booked until 2026. TSMC plans to raise prices for its 3 nm chips by over 5%. It also plans to increase prices for advanced chip packaging by 10-20% next year. In addition to raising 3 nm chip prices, TSMC is also increasing production of advanced chip packaging like CoWoS due to increased demand. NVIDIA takes up about half of TSMC's packaging capacity and is expected to pay higher prices to secure more supply ahead of competitors.
Source:
TrendForce
Last year, many companies were waiting for TSMC's products, ever-increasing demand and production issues causing delays. Even though things got a bit better this year, there's still not enough supply. TSMC says that even making three times more 3-nanometer chips isn't enough, so they need to make even more. NVIDIA's profits are very high, much higher than other companies like AMD and even TSMC. If TSMC raises prices for these advanced processes, it won't hurt NVIDIA's profits much, but it might lower profits for other companies like Apple, AMD, and Qualcomm. It will also have an impact on end-users.
According to a report by Commercial Times, TSMC's 3 nm capacity is fully booked until 2026. TSMC plans to raise prices for its 3 nm chips by over 5%. It also plans to increase prices for advanced chip packaging by 10-20% next year. In addition to raising 3 nm chip prices, TSMC is also increasing production of advanced chip packaging like CoWoS due to increased demand. NVIDIA takes up about half of TSMC's packaging capacity and is expected to pay higher prices to secure more supply ahead of competitors.
72 Comments on TSMC Thinking to Raise Prices, NVIDIA's Jensen Fully Supports the Idea
Something, something Ngreedia..........the more you buy.........leather jackets...... what have I missed?
EDIT: beaten by under a minute :roll:
The bottom line as a gamer, no bueno for video card prices, this will hit AMD fairly hard too. Not unexpected from a fab that are essentially at the top of their game, just unwelcome.
Aren't higher prices for advanced lithography sensible? Isn't triggering competition due to higher prices by using other factories goes against fabrication monopoly?
I won't answer those questions, but I do not expect most TPU members to bring them up before furiously bashing the keyboard at the sight of the word combination "price increase".
/s
forums.macrumors.com/threads/apple-says-ipad-air-performance-details-are-accurate-despite-9-core-gpu-mistake.2428070
As for Jensen himself, no idea how much of his impromptu Computex keynote you could swallow, but at times it seems isn't quite there. Such a stream of nonsense coming from his mouth. This statement almost seems sane in comparison.
Nvidia: With the money I have now, certainly. I would love to be the only one capable of paying your prices!
TSMC: You sure? I mean, your customers?
Nvidia: In the last 15 years at Nvidia, we have established one thing as pure truth. Our customers will pay whatever we ask them to pay and they will be even happier having to pay more. Because the more they pay...
TSMC: ....the more they save?
NVidia: Well,... no! That's the marketing BS. The more they pay, the more they brag about having Nvidia hardware and in the end, the more I make.
TSMC: Aren't they going to get angry about pricing?
Nvidia: That's the fun part. They do get angry, every time we increase prices, but not with us.
TSMC: Really? With whom do they get angry?
Nvidia: With the competition of course.
TSMC: Wow!!!!..... Haven't thought it that way. We should increase prices then.
But when i think about it while i read it seems to me its true as well. At least it looks that way which is kinda sad.what's illegal exactly? I;m not sure what you you are referring to.
Although it is suspicious nonetheless because the company which will have to pay more is cheering for it.
It was stated recently AMD is going Samsung. It makes me wonder is it because TSMC's willingness to raise the price or is it just simple diversification.
nvidia apple Microsoft Amazon Google meta are valued far to high as is tsmc and everting traded in the top 100.
Market cap isn’t something that should be used to set prices, the bubble will burst and company valuations will correct them,selves that doesn’t mean they can cut their prices accordingly.
the only thing currently going well is AI servers and everything involved the rest of the market has been going trough a slump because of far to high prices since 2022 and this really isn’t going to help.
Interest rates going to be cut soon, inflation will go up higher again more money will be parked next to the rest of all the money in the world as the rest of the economy grinds further to a halt.
Nvidia hat a big margin, so they can keep the prices the same, but AMD might not be able to keep their prices so low...
I wholeheartedly pray amd gpus can get on top in both raster, rt and efficiency, then I'll be laughing off with the pricing and the break dancing arguments used to defend them.
I don't care. The market decides, and corrects. And if the market doesn't, we will correct it, simply because things are not affordable.
Remember. Patience. It has worked this way since the first marketplace. If you have patience, you can direct the market or the purchase better. We don't need new hardware. We want new hardware. These are two different things entirely.Heheh indeed
NV went with 8nm Samsung for Ampere but I can't remember what was exactly the reason.