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Home arrow News & Interviews arrow News May 2008 arrow TSM Mulls Raising Prices to Face Higher Costs
TSM Mulls Raising Prices to Face Higher Costs PDF Print E-mail

By Wayven Pienaar, on Thursday, 29 May 2008

Published in : The News, News May 2008


semiconductor.jpgThe world’s largest contract chip manufacturer, Taiwan-based TSM, is contemplating raising product prices, in the face of decreasing profits.

 

Taiwan Semiconductor Manufacturing (TSM) says that in addition to facing increasing costs for building ultra-modern chip plants for advanced chip manufacturing, it is also feeling the pain of rising inflation. Reports quote the company vice president as saying "Average selling prices have been falling and profits have been under pressure.” 


It would appear that price hikes are definite but it was not disclosed how big or small those price climbs would be. Industry experts say that chip firms have seen a nose-dive in profits, mostly due to low chip prices, and adjustments will have to be made to redress the balance.

Gross operating profit of the global semiconductor industry declined to 16% in 2007, compared with 21% in 2004, in spite of robust demand, media reports.


Last update : Thursday, 29 May 2008

   
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Keywords : TSM, Chip, Semiconductor, Technology, IT


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