Tariffs could force TSMC to increase its chip production prices

TSMC is the world’s largest chip manufacturer. The company makes chipsets for tech giants such as Apple and Qualcomm. Now according to a new report, the company is reportedly considering increasing chip production prices by 15%. This move comes as a response to tariffs imposed on imported goods by US President Donald Trump.

This could have a massive impact on the industry as a whole. The increased production prices means that companies like Apple, Qualcomm, and NVIDIA will be forced to raise their prices. This means we can expect more expensive smartphones, tablets, and computers. Qualcomm has reportedly raised its own prices over the years. Combine this with a potential increase in TSMC’s prices and we could be looking at very drastic price increases.

However, TSMC could avoid these tariffs by producing more chips in the US. TSMC already has some operations in the US. However, we have to wonder if these operations are large enough to satisfy the demand from its customers. For instance, we know that Apple is one of TSMC’s largest customers.

Apple makes and sells millions of iPhones, iPads, and Mac computers every year. With more of these products relying on Apple’s custom chipsets, it means that the company has to rely heavily on TSMC’s production capabilities. A recent report suggested that Apple is in the final stages of verifying its first “made in America” chips from TSMC. However, like we said, whether or not TSMC’s US operations can keep up with the demand remains to be seen.

In the meantime, it might not be a bad idea to prepare yourself both mentally and financially for more expensive smartphones in the future.