TSMC Thinking to Raise Prices, NVIDIA's Jensen Fully Supports the Idea

[Nomad76]

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.

View at TechPowerUp Main Site | Source

 

[natr0n]

Jensen can suck an egg or the leather off a cow. Greedy bastard.

 

[wolf]

Oof the comments are going to be fun on this one.

Something, something Ngreedia..........the more you buy.........leather jackets...... what have I missed?

EDIT: beaten by under a minute

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.

 

[maxfly]

Leave it to Jensen. Always with the idiotic public comments.

 

[dj-electric]

Oof the comments are going to be fun on this one.

Something, something Ngreedia..........the more you buy.........leather jackets...... what have I missed?

EDIT: beaten by under a minute

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.

Damned if you do, damned if you don't situation. Isn't supporting your component supplier by making them earn more money kind of... you know, goes against greed?
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".

 

[64K]

I cried a little inside when I read that Apple's profits might take a hit.

/s

 

[nguyen]

Intel also use TSMC fab for their Lunar Lake too, so all next gen stuff will probably be more expensive huh

 

[R0H1T]

Of course he does, he'd probably ask 10x of what the price increase cost him from trillionaire corps!

I cried a little inside when I read that Apple's profits might take a hit.

/s

Nah they'd jack up the prices just as easily, heck they were selling 9c GPU in iPad Air 2024 as 10c & their stupid fans totally defended the move!

Apple Says iPad Air Performance Details Are Accurate Despite 9-Core GPU Mistake

Though Apple mistakenly listed the M2 chip in the iPad Air as having a 10-core GPU instead of a 9-core GPU, the performance claims that it shared during the iPad Air launch and in marketing materials are accurate. In a statement provided to 9to5Mac, Apple said that the details it shared on...

forums.macrumors.com

 

[azrael]

Damned if you do, damned if you don't situation. Isn't supporting your component supplier by making them earn more money kind of... you know, goes against greed?
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".

nVidia will just pass on the extra cost to the consumer. Maybe add a little on top of that just because.

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.

 

[john_]

TSMC: Should we charge more?
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.

 

[ratirt]

The price is low and yet chips cost so damn much. If TSMC increases the price then not only it will give GPU makers wind in their wings to increase the price again but it will blow away the argument for the prices being high in the first place. We all know what that means. GPUs mid range $1K.

 

[ARF]

TSMC: Should we charge more?
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.

Isn't this a cartel and lllegal, to be reported to the Bureau | Commission for Consumer Protection?

 

[ratirt]

TSMC: Should we charge more?
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.

I know this is supposed to be funny and it is.
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.

Isn't this a cartel and lllegal, to be reported to the Bureau | Commission for Consumer Protection?

what's illegal exactly? I;m not sure what you you are referring to.

 

[ARF]

what's illegal exactly? I;m not sure what you you are referring to.

It's called price-fixing, and unfair/disloyal competition.

 

[Chaitanya]

Oof the comments are going to be fun on this one.

Something, something Ngreedia..........the more you buy.........leather jackets...... what have I missed?

EDIT: beaten by under a minute

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.

AMD will also raise their prices, they are TSMC customer and so is Intel. They will keep quite and let their competitor be the "bad guy".

 

[ratirt]

It's called price-fixing, and unfair/disloyal competition.

I doubt it is price fixing since it is a 3rd party supporting the idea end encouraging it.
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.

 

[R0H1T]

It's called price-fixing, and unfair/disloyal competition.

It's only illegal/anti-competitive if you don't grease the right palms!

Spoiler

 

[olymind1]

Sad, but what should we expect to be honest, mining/cryto bubble popped (the second time too), covid shortages are gone, they had to come up something now it is AI everwhere to generate new sales, because without it they would barely sell anything. Who would want to repleace their newly bought 2 years old hw during covid what works. They can't sell us major performance upgrade so they came up with this crap. Of course hw makers and manufacturers see $€ signs.

 

[kondamin]

Tsmc isn’t valued to low.
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.

 

[LazyGamer]

Oh boy! Can't wait for RTX 7060 or 8060 one day to cost as much as RTX 4090 today.

 

[Dr. Dro]

Oof the comments are going to be fun on this one.

Something, something Ngreedia..........the more you buy.........leather jackets...... what have I missed?

EDIT: beaten by under a minute

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.

This post should have been put up already locked. Nothing good can come out if it, too much ingrained clubism. Unfortunately I believe the TPU patronage doesn't have enough maturity to discuss this in a civil manner. But hey I'd like to be wrong for once!

 

[Gucky]

TSMC needs money to expand production and going into smaller nodes. TSMC getting more money can speed both up.
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...

 

[JustBenching]

Oof the comments are going to be fun on this one.

Something, something Ngreedia..........the more you buy.........leather jackets...... what have I missed?

EDIT: beaten by under a minute

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.

Yeah but amd, our lord savior, won't increase prices because of greediness but because.... because.... because... Nvidia forces them to. Somehow. Don't ask for details.

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.

 

[londiste]

Context is important. And talk is cheap.

it’s estimated that both parties will negotiate chip prices for next year

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.

Has anyone else gone from TSMC to Samsung over price disagreements? Like, in last 5 years or so

 

[Vayra86]

Yadayada prices.

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.

Context is important. And talk is cheap.

Heheh indeed