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Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: robert b furman who wrote (13259)	3/9/2022 10:38:19 AM
From: Kirk ©	Read Replies (1) \| Respond to of 26800

Good news for CapX stocks when our customers can raise prices for what they build with our tools. TSMC plans price hike for 8-inch foundry services Monica Chen, Hsinchu; Jessie Shen, DIGITIMES Wednesday 9 March 2022 TSMC plans a 10-20% price hike for its 8-inch foundry services, with the new prices to be effective starting the third quarter of 2022, according to sources at IC design houses. TSMC is also mulling the feasibility of raising quotes for its 12-inch foundry services amid growing inflation concerns, the sources indicated. TSMC has already seen its 8-inch fab capacity fall short of customer orders, which may allow it to raise its 8-inch foundry quotes, the sources said. Other 8-inch foundries are expected to follow suit in raising their prices to cope with inflationary pressures, the sources added. Rising inflation and supply-chain disruptions have led to ever-increasing production costs facing chipmakers, the sources noted. TSMC will have to adjust its prices again to maintain its gross margin above 55%, the sources said. TSMC canceled price discounts for all orders in 2021, and has initiated a 10-20% price hike for its advanced and mature process offering this year, the sources said. Rising foundry costs will be challenging fabless chipmakers, which are seeing their customers increasingly reluctant to accept further price hikes, the sources indicated. TSMC has responded saying the company does not comment on reports about its foundry service prices. TSMC during its most-recent earnings conference call revised upward its revenue CAGR outlook for the next several years to 15-20% in US dollar terms, up from the approximately 15% targeted previously. TSMC said it also believes its long-term gross margin of 53% and higher is achievable.