According to the latest report, industry sources revealed that TSMC has determined that from January 2023, the price of most processes will increase by about 6%, although there have been recent concerns that many end market demand in the second half of 2022 may be disappointing.
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Moreover, many IC design companies have expressed pessimism about their sales prospects before the end of the year, due to the reduction in orders from branded equipment suppliers amid increasing macro uncertainty. However, TSMC and other pure-play foundries in Taiwan are still on track to see record revenue in 2022, the person said.
It pointed out that orders from TSMC and other large fab customers in Taiwan have not been significantly reduced, and it is expected that by the end of this year, customer orders will still account for more than 95% of production capacity. Taiwanese foundries are also mainly looking for capacity expansion as they have long-term order commitments with customers. In addition, rising raw material and labor costs, coupled with rising electricity costs, have put pressure on foundries to further increase their offers.
The person further pointed out that the prolonged delivery cycle of semiconductor equipment has also dragged down the capacity expansion of global wafer foundries. Lead times for fab equipment have been extended to as long as 30 months and show no signs of declining. The arrival of new foundry capacity over the next two years may be lower than they expected due to delays in equipment installation.
