TSMC Allegedly Increasing Chip Prices By 20 Percent Amidst Ongoing Shortage

TSMC is reportedly increasing the prices of its chips, the company told its clients earlier in the week. According to a report by WSJ (paywall), the semiconductor manufacturer plans on raising its prices by as much as 10% for its advanced chips and 20% for less advanced components.

The announcement clearly isn’t happy or welcoming news, given that the world is still suffering from an ongoing chip shortage that many experts and industry leaders say could last well into 2022 and the early months of 2023. On top of that, TSMC’s price hike will most definitely be reflected within the final bill of finished products that use its components.

That list, by the way, unsurprisingly includes electronic goods like laptops, phones, PC components, and game consoles like the PlayStation 5 and Xbox Series X. Product that, by the way, are made by equally big name brands like Apple, AMD, NVIDIA, and Qualcomm, to name a few.

There is, of course, a silver lining of sorts in TSMC’s announcements. Raising the prices means that, for the first time since the pandemic began, demand for its chips could ultimately reduce and, in turn, take some pressure off already constricted supplies. At least, until its new factories in the US and Taiwan become operational.

Analysts: Ongoing Semiconductor Shortage Could Still Affect Sony PlayStation 5 Supply

As more Sony PlayStation 5 (PS5) supplies slowly and steadily make their way into the hands of consumers, the company’s gaming chief also assured gamers that it will be able to produce a “decent number” of the console during the second half of 2021. However, some industry analysts are seeing signs to the contrary.

Several analysts point out that the ongoing COVID-19 pandemic and the corresponding lockdowns have been a source of pain and grief to the production chain of many semiconductor producers and brands. This also includes brands within the automotive and smartphone industry.

Sony, however, seems to be feeling optimistic about the future sales of the PS5. Jim Ryan, president and chief executive officer for Sony Interactive Entertainment, expects the current supply limitation for the consoles to get better throughout the year. However, Ryan fell short of providing a guarantee that Sony would have enough PS5 in stock to meet this year’s holiday sales season.

Since its launch last year, Sony sold a total of 4.5 million PS5s in November and December, and has plans to outperform the sales figure of its predecessor, the PS4. Of which it sold 14.9 million units in the first 12 months of its existence.

By comparison, Nintendo sold 26 million units of its Switch console during the whole of 2020, while Microsoft sold just 2.8 million Xbox Series X and Series S consoles within the same November and December time frame last year. It also doesn’t help that demand for the PS5 is still running high and even worse, it’s a factor with no end in sight.

On another note, Sony recently announced that a 2nd generation PSVR headset was in the works, although unsurprisingly, the announcement was lacking a great deal of detail.