The world’s largest semiconductor maker to raise prices Car News

The world’s largest semiconductor maker, Taiwan Semiconductor Manufacturing Company (TSMC), is rumored to raise prices by up to 20%, dealing a further blow to a beleaguered auto industry.

According to Wall Street Journal reports, TSMC plans to increase the costs of its most advanced chips by 10%, while less advanced items more commonly used in cars will increase by 20%. The newspaper said the price hike is expected to come later in 2021 or 2022.

Autocar approached TSMC for comment, but the company declined to confirm or deny the information, saying, “TSMC does not comment on prices or market rumors. “

The news comes as many automakers have been forced to cut production to cope with the semiconductor shortage.

Toyota was the latest to announce significant cuts to factory production, slashing its global production levels for September. According to reports, the Japanese company intends to build 540,000 vehicles next month, 40% below its initial target of 900,000.

In total, 27 of its 28 production lines at 14 factories in Japan will be affected, with factories in the United States, Europe and Asia also facing disruption. However, Toyota has confirmed to Autocar that its UK facilities at Burnaston and Deeside are “currently operating as intended” and are not expected to be affected.

Earlier this year, Ford said it could lose 50% of its capacity, while Nissan, Honda and Jaguar Land Rover also announced that they would cut production at the plant.

Even companies that had a larger inventory of parts, like Toyota, are now starting to feel the effects.


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This notice was published: 2021-08-27 11:42:20

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