Tech

TSMC and SanDisk Announce Price Increases, Impacting Chip and Flash Memory Costs

TIG SEA7 hours ago

49 1 minute read

In recent developments within the semiconductor industry, major players TSMC and SanDisk have announced significant price increases for their products, citing various factors influencing the market.

TSMC’s Price Adjustment

Taiwan Semiconductor Manufacturing Company (TSMC) has informed its clients of a planned price hike ranging from 5% to 10% for its advanced chip manufacturing processes, effective from 2026. This adjustment will affect chips produced using nodes below 5nm, including the upcoming 2nm process. The primary reasons for this increase are escalating production costs, particularly due to investments in new facilities in Arizona, and the impact of U.S. tariffs and currency fluctuations. For instance, the cost of a 3nm wafer is approximately $20,000, and the 2nm wafer is expected to exceed $30,000. These changes are anticipated to influence the pricing of smartphones, CPUs, and AI components.

SanDisk’s NAND Flash Price Increase

Similarly, SanDisk has announced a price increase of over 10% for its NAND flash products, effective from April 1, 2025. This decision is attributed to a tightening supply-demand balance, higher import tariffs, and unexpected demand surges. The company plans to review and potentially adjust prices more frequently in the coming quarters. The increased demand is largely driven by the proliferation of AI servers and enterprise storage solutions, which require more NAND flash memory than traditional systems.

Market Implications

These price adjustments by TSMC and SanDisk are expected to have a ripple effect across the technology sector. Consumers may experience higher costs for devices utilizing advanced chips and NAND flash memory. Additionally, industries relying on these components, such as AI, gaming, and enterprise IT, might face increased operational expenses. The semiconductor market is anticipated to continue evolving, with supply and demand dynamics playing a crucial role in shaping future pricing trends.

Final Thought

The recent announcements by TSMC and SanDisk underscore the complexities of the global semiconductor market. While price increases are often a response to rising production costs and demand, they also highlight the challenges faced by both manufacturers and consumers in an ever-evolving technological landscape. As industries continue to innovate and expand, staying informed about these developments is essential for navigating the future of technology.