The 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.