Tuesday, June 3rd 2025

TSMC Confirms No Middle East Expansion and Anticipates Higher Wafer Costs

TSMC has declared that it has no immediate plans to build fabrication plants in the Middle East, reinforcing its strategy to focus on regions where customer demand is strong. Last week's rumors that TSMC might establish a gigafab in the United Arab Emirates have been dismissed by company executives as baseless. CEO CC Wei explained that an expansion into the Gulf does not fit with TSMC's model of locating factories near its largest clients. With ongoing investments in the US, Japan, and Germany, the company aims to serve technology leaders and automotive manufacturers more effectively. Wei added that, without a solid local customer base, building in the Middle East would be impractical. At the same time, TSMC indicated it is reviewing wafer pricing. Fluctuations in the Taiwanese dollar and changing global tariffs were cited as factors under consideration.

According to Wei, long-term agreements could include modest price increases, especially for advanced process nodes, where research and development costs and manufacturing challenges are rising. Looking ahead, TSMC confirmed that the upcoming A14 1.4 nm node wafers are expected to be priced around $45,000 each. This would represent a 50 percent increase over the current 2 nm wafers, which cost about $30,000 apiece. Production of the 1.4 nm node is projected to begin around 2028. Only TSMC's top-tier customers are likely to reserve capacity for this cutting-edge node in its early stages. As demand for advanced semiconductors rises, the company's approach to pricing and geographic focus will be key to maintaining its leadership in the global foundry market.
Sources: via ComputerBase, Wccftech
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8 Comments on TSMC Confirms No Middle East Expansion and Anticipates Higher Wafer Costs

#1
Denver
U$9000 dGPUs and beyond on the Horizon. Will Intel save us? Can Samsung hit decent yields? Don't miss the next episode of Silicon Ball Z. Oh, wait... /s
Posted on Reply
#2
Daven
“TSMC confirmed that the upcoming A14 1.4 nm node wafers…”

You can just say A14 node. There are no features 1.4 nm apart anywhere in a chip made on this process.

Unless you think the junction gap between two transistors is just three silicon crystal unit lengths apart. Now that would be amazing.
Posted on Reply
#3
Quicks
This is what happens, when there is no one else to compete with TSMC. Same with people that loyalists to Nvidia is a major problem for the future of PC components prices.
Posted on Reply
#4
Neo_Morpheus

Anticipates Higher Wafer Costs

Funny how the words "reduced" and "lower" seems to have disappeared from these companies dictionaries....
Posted on Reply
#5
NoLoihi
Neo_MorpheusFunny how the words "reduced" and "lower" seems to have disappeared from these companies dictionaries....
No, no, we 'got reduced staffing and lower … somebody mind filling it in? :nutkick:
Posted on Reply
#6
remixedcat
DenverU$9000 dGPUs and beyond on the Horizon. Will Intel save us? Can Samsung hit decent yields? Don't miss the next episode of Silicon Ball Z. Oh, wait... /s
Intel is dragging it's feet in Columbus so id not hold your breath
Posted on Reply
#7
Prima.Vera
Monopoly and greed. The "perfect" combination.
But greed, greed never changes.
Posted on Reply
#8
kondamin
Building production facilities in a place with scarce water resources isn’t a good idea.
So that’s good,
I do wish some eu companies were to start an initiative like rapidus.
Posted on Reply
Jun 6th, 2025 23:41 CDT change timezone

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