TSMC, Samsung plan price hikes for chip designers – reports Just as costs for some components have started to come down, TSMC and Samsung, the two largest contract chip manufacturers in the world, are reportedly planning to increase prices of production, which may affect Nvidia, AMD, Apple, and others that rely on the foundries. Reports emerged earlier this week stating that Taiwan- …
For most electronic devices (phones, computers etc) the foundry chip cost is a small part of the total device price.
The cost for a 300mm wafer processed at 7nm is in the order of $10k. This price is divided by the number of working chips derived from the wafer.
As an example given the size of a Ryzen chiplet it should be possible to get over 600 working chiplets from a single wafer giving a foundry cost for the bare chiplet of around $17 - if this increases to $18 (and assuming a similar increase in cost for the I/O chip) then the manufacturing cost of a Ryzen CPU would increase by $2 which is a small part of the selling cost of the completed CPU.
Given the inflation in so many things is running at several percent, the increase from TSMC is not surprising - they have to pay for electricity and consumables many of which will have increased in price.
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Assuming that some politician isn't 'encouraged' to introduce a law requiring Federal computers to use chips made in the USA (for security reasons) so these TSMC/Samsung Freedom Chips are going to be 10x the price - so leaving TSMC/Samsung with even more pricing power on their foreign chips
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