What They Say
The Nikkei said that it had seen a letter from TSMC to clients asking them to accept higher prices so that it can ramp up investments as it has seen a “structural and fundamental increase” in the demand for semiconductors. It plans to spend $100 billion over three years including new fabs and the expansion of existing facilities.
The letter said that TSMC will “suspend wafer price reductions” for the whole of 2022, whereas the firm in the past has routinely reduced pricing each quarter for its clients. The firm said that it has been running at 100% utilisation for a year.
What We Think
Well, I try to leave the topic of semiconductors to others, but you can’t make displays without them! (BR)
