TSMC plans to raise prices

— 3:13 PM on May 27, 2008

AMD and Nvidia may soon have to pay a little more to get their graphics processors made. As eWeek reports, Taiwan Semiconductor Manufacturing Company (TSMC) plans to raise prices for chips based on its most advanced process technologies. The site quotes TSMC Vice President Jason Chen as saying the company faces pressure from factors like falling average selling prices, high oil prices, and high inflation. (Core inflation in Taiwan reached 3.1% last month, its highest in nine years.)

Those familiar with the industry will know TSMC as the world's biggest contract semiconductor manufacturer. TSMC currently produces 65nm graphics processors for Nvidia and 55nm GPUs for AMD, and it recently completed work on a 40nm process. Because of its imposing presence in the semiconductor market, eWeek hints that TSMC can afford to raise prices—after all, the firm has "more than three times" as many sales as its closest competitor, United Microelectronics Corp.

TSMC hasn't publicly laid out exactly how it will change its pricing model. However, considering Chen said the hike will mostly impact "chips made by advanced process technology," the latest high-end graphics products from AMD and Nvidia could be affected.

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