TSMC's OEM price increase storm continues, and this time it seems that it is going to be on the front line with , Apple . What's going on? Apple and TSMC have their own ulterior motives, who can succeed in this game?
Apple: Special customer
Due to the epidemic and the rapid development of artificial intelligence , the global semiconductor foundry company has raised its price many times in the past two years. However, as the industry leader, TSMC has relatively slow price increase, and has also treated it differently. The price increase of Apple's A-series chips is far lower than that of chips that other customers need to manufacture.
It is reported that this has also caused dissatisfaction among companies such as Nvidia, and asked TSMC to treat it equally.
is not difficult to see that among TSMC's customers, Apple is definitely a special existence. It can not only have close ties with TSMC, but also have more "bargaining power" than other customers. This is mainly due to Apple's dominance in the high-end market, which can bring more than 25% of its revenue to Apple every year.
TSMC: I want to raise prices, but Apple can't stop
According to common sense, if TSMC wants to raise prices again, it must discuss with Apple to determine how much it will increase and whether to "special care" as before.
At the beginning, TSMC reported that it would raise prices next year, with the price increase of about 6%-9% (depending on the process process , the price increase is also different). The price increase at one time seems to have caused great dissatisfaction in the market, so soon after, new news came out, with an increase of only about 3%-6%.
doesn't seem to have much increase, but when the base is relatively large, it is a very exaggerated number. Therefore, Apple directly rejected TSMC's price increase strategy. This has also caused quite a lot of waves in the industry. It seems that Apple is really not accustomed to TSMC at all.
I thought this matter came to an end and TSMC would break its teeth and swallow it in my stomach. As a result, new news has recently spread, and TSMC decided to ignore Apple's rejection and continue to implement the price increase strategy.
This is unexpected. After all, Apple accounts for more than 25% of TSMC's revenue, and it also "openly and secretly "explained" to switch to the Samsung camp. Now such a scene is happening, which is quite like a couple breaking up.
each has ulterior motives
In terms of whether the price increases or not, TSMC and Apple are obviously in the same game, and both sides have their own little things.
In addition to Apple, about 70% of other TSMC customers are likely to compromise on price increases. For TSMC, this is the capital for negotiations and the confidence and voice that global OEM leaders should have. On the other hand, your own OEM is the best. If Apple chooses Samsung OEM, can it still maintain its first position in the high-end market?
For Apple, it is TSMC's number one funder. If it does not do TSMC's business, the latter's revenue will drop directly. If it goes into Samsung's arms, it will undoubtedly be a heavy blow to TSMC. More, Apple has always "eat meat by itself and drinks soup in the supply chain". If it is defeated by TSMC, it will not be in line with the image of "supply chain master" he has always established.
Basically, although TSMC and Apple "have their own thoughts", they are essentially pursuing interests. If you really want to "break up", it will be extremely inconsistent with both parties' interests. So the final outcome of this matter must be one side compromise.
Given the current situation and the environment TSMC is in, TSMC may be the more compromised party. After all, Apple is not the biggest challenge, the Americans are.
