Kris Holt joined Engadget as a contributing reporter on the news desk in 2018. He has been writing about technology, games, streaming and entertainment for over a decade after starting his career as a sub-editor on a local newspaper. Kris holds a Master of Arts degree in English from the University of Dundee.
is the world’s biggest chipmaker and its products are found in everything from phones to game consoles and computers. But devices using TSMC chips could become more expensive if manufacturers opt to buy ones that the company makes outside of its home base of Taiwan .
“If a customer requests to be in a certain geographical area, the customer needs to share the incremental cost,” TSMC CEO CC Wei said on an earnings call. “In today’s fragmented globalization environment, cost will be higher for everyone, including TSMC, our customers and our competitors.”points out, it’s more expensive for TSMC to manufacture chips outside of Taiwan .
TSMC has plants in Japan and is building several in Arizona, the first of which started operating this month and is expected to go into full production this year. It’s also constructing a plant in Germany.under the CHIPS Act, which seeks to bolster semiconductor manufacturing in the country. In return, TSMC pledged to up its US investment by $25 billion to $65 billion.
Meanwhile, TSMC expects its manufacturing costs to increase in Taiwan. That’s because power prices there are soaring. An earthquake earlier this month is also expected to have a negative effect on the company’s profitability, as is its struggle to make the manufacturing of its most advanced 3nm chips more efficient.
Apple, NVIDIA, AMD and Qualcomm are among TSMC’s more notable customers. So if they end up buying chips from the company’s US, Japan or Germany fabs, their manufacturing costs could go up. Take a wild guess who’d end up having to eat the cost of those increased expenses so device makers can maintain their profit margins.
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