Reports suggest that Taiwan Semiconductor is planning to raise prices: 3nm may increase by over 5%, while advanced packaging may rise by 10%-20%

According to a report from the Taiwan Business Times on the 17th, Taiwan Semiconductor Manufacturing Company (TSMC) plans to raise prices. The price increase for 3nm foundry services may be over 5%, and the annual pricing for advanced packaging is also expected to increase by around 10%-20% next year. TSMC's 3nm production capacity is fully booked by seven major customers including Apple and NVIDIA, leading to a supply shortage, with orders expected to be full until 2026.

As of the time of writing, TSMC's stock price is 921 TWD per share, with a market capitalization of 23.89 trillion TWD. Foreign investors have bought 395,000 shares of TSMC stock since the beginning of this year.

The report also cited supply chain sources indicating that not only are prices for 3nm foundry services expected to rise, but the capacity for advanced packaging is also facing a supply shortage. After the expansion of TSMC's Zhunan advanced packaging plant (AP6), it is expected that the monthly capacity of CoWoS in the third quarter will increase from 17,000 wafers to 33,000 wafers. With the increasing demand for AI, TSMC's advanced packaging capacity is in short supply. Major customers such as NVIDIA occupy about half of the capacity, while AMD, Broadcom, Amazon, and Marvell are also actively adopting advanced packaging technology.

It is reported that TSMC will add CoWoS-related equipment in the third quarter and require equipment manufacturers to send engineers to major factories. Shortages in advanced processes and packaging capacity are expected to persist until 2025.

The report also mentioned that the estimated market demand for next year exceeds 600,000 wafers, while TSMC expects to provide 530,000 wafers, leaving a gap of about 70,000 wafers. The price increase for advanced packaging has become a certainty