CPU & GPU costs could go up following TSMC's reported price increase of chip production

What you need to know

• TSMC will reportedly increase the cost of its chip production in December 2021.
• The move could lead to higher prices for CPUs, GPUs, SoCs, and other PC parts.
• Several chip producers have raised prices in recent months, including GlobalFoundries, PSMC, SMIC, and UMC.

Taiwan Semiconductor Manufacturing Co. (TSMC) will reportedly raise its prices for chip production. The move will likely improve TSMC's margins but could also lead to increased prices for some of the best CPUs, best GPUs, SoCs, and some other PC parts. The price increases are in part due to an increased demand for semiconductors.

According to a report by DigiTimes, the prices of wafer processing with TSMC's 7nm and thinner fabrication processes will increase by up to 10%. A larger increase of 20% is planned for wafer processing with TSMC's 16nm and thicker nodes. The increased prices will take effect in December, according to sources that spoke with DigiTimes.

These increased prices could potentially lead to a rise in the cost of PC parts for end users. The exact effect that these changes will have on the price of consumer-oriented goods could vary between industries. As noted by Tom's Hardware, the cost of Apple products may not change drastically because the company sells expensive devices. Chip sales by companies like AMD and Qualcomm may be more affected, which could result in lower profits or increased prices for consumers.

DigiTimes notes that TSMC isn't alone in raising its prices. The chip production prices of GlobalFoundries, Powerchip Semiconductor Manufacturing (PSMC), Semiconductor Manufacturing International (SMIC), and United Microelectronics (UMC) have all increased recently in response to growing demand.