According to the supply chain, TSMC will raise prices for most of its processes by about 6% from January 2023.

The supply chain source said IC design companies are not optimistic about the sales outlook for this year, as orders are dwindling amid increasing global economic uncertainty. However, TSMC and other pure-play foundries are still on track to see their 2022 revenue hit an all-time high.

The source pointed out that large customer orders for TSMC and other fabs have not yet been significantly cut, and customer orders are expected to still account for more than 95% of capacity by the end of this year. In addition, rising raw material and labor costs, coupled with rising electricity costs, have put pressure on foundries to further increase their offers.

The source further pointed out that the prolonged lead time of semiconductor equipment has also dragged down the capacity expansion of global wafer foundries. Lead times for fab equipment have been extended to as long as 30 months and show no signs of shortening. The expansion of new foundry capacity over the next two years may be lower than they expected due to delays in equipment installation.