TSMC Decides To Slash 7nm Pricing Amid Weakening Demand, 3nm Costs Rises Up By 10%

TSMC Decides To Slash 7nm Pricing Amid Weakening Demand, 3nm Costs Rises Up By 10%

TSMC has reportedly decided to raise 3nm chip prices by a reasonable margin but has also drastically cut 7nm process prices amid weak demand.

TSMC's 7nm family is now discounted 10% to capture market interest, with the firm looking to produce “specialty” chips.

Well, it looks like TSMC's latest mainstream move will witness a price hike, after several reports predicted the firm's move. With the AI ​​frenzy in play, major tech giants like Apple and NVIDIA are looking to integrate TSMC's 3nm node into their upcoming products. Fortunately, for semiconductor firms, consumers have. Agree on price hikeGiven that TSMC manages a stable supply chain. However, it seems that TSMC's 7nm usage rates have started to hurt the firm, so they have decided to implement price cuts.

Taiwan Economic Daily Prices for TSMC's 7nm family of products are expected to increase by a massive 10%, the report said. Officials say 7nm production was expected to be in full force. However, due to waning interest from the mobile and computing sectors and production delays from a client, TSMC has decided to take a risk on 7nm pricing. With this reduction, it is expected that the process will regain its sales traction, but currently it is not certain, considering that most of the market is focused on the current generation process.

The Taiwanese giant may try to drum up interest in 7nm by integrating the technology into customized offerings, as the firm did with 28nm in 2018-2019. Also, TSMC has a plan. Establishment of facilities in Japan In the coming years, focusing on advanced processes like 7nm, so the company could see a recovery from such regions. For now, the focus is on 3nm for mainstream markets.

TSMC's reign over the markets remains strong. With the expected arrival of the company's 3nm products, the industry expects a massive increase in revenue, perhaps one of the highest since 5nm. It will be interesting to see how the firm's state-of-the-art process contributes to market innovation, and from the looks of it, expect a huge increase in performance capabilities with 3nm-based products.

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