SemiMedia SemiMedia
  • Breaking News
  • MarketWatch
  • Distribution
  • Manufacturer
  • Video
  • About us
Home › MarketWatch › TSMC seeks 30% wafer price cuts from suppliers amid NT dollar surge
  • 0

TSMC seeks 30% wafer price cuts from suppliers amid NT dollar surge

SemiMediaEdit
May 8, 2025

May 8, 2025 /SemiMedia/ — TSMC has asked key suppliers to submit revised pricing plans for raw wafers and other inputs, in response to the rapid appreciation of the NT dollar that threatens to squeeze operating margins.

Sources familiar with the matter said TSMC is accelerating its cost-reduction initiatives, originally intended for next year, and is pushing for raw wafer prices to be slashed by at least 30%. The request reflects the company’s urgency to offset foreign exchange risks.

In recent weeks, the NT dollar has surged from about 33 to 29 against the U.S. dollar, marking a sharp appreciation. Analysts estimate that every 1% rise in the local currency could cut operating profit margins by 0.4 percentage points, a significant hit for an export-driven industry.

TSMC has not revised its 2025 guidance but acknowledged it is monitoring exchange rate fluctuations closely. The company’s Q2 forecast assumes a USD/NTD exchange rate of 32.5, projecting revenue between $28.4 billion and $29.2 billion, with gross margins of 57% to 59% and operating margins of 47% to 49%.

The request for cost reductions signals TSMC’s proactive approach to maintaining profitability amid global currency shifts and its ongoing effort to stabilize costs across the semiconductor supply chain.

Related

chip manufacturing costs currency risk electronic components news Electronic components supplier Electronic parts supplier foundry profitability raw wafer cost reduction Semiconductor supply chain Taiwan dollar impact TSMC wafer pricing
Fujifilm to build semiconductor materials plant in India to support chip supply chain
Previous
AMD warns of $1.5 billion hit in 2025 from U.S. chip export curbs to China
Next

All Comments (0)

Back
No Comment.

Top Post

Fire broke out at AKM factory in Japan
Qualcomm ranked first in the world's top ten IC design companies
Mouser Electronics expands to the Philippines with local customer service center
Analyze the key factors and prospects of electronic components shortage from the perspective of wafer industry
What is the root cause of the decline of the Japanese semiconductor industry?
ST releases price increase notice

Subscribe SemiMedia

Please check your E-mail to confirm the subscribtion.

Related posts

Infineon unveils 650 V CoolGaN switch to streamline power conversion across EV, solar, and data center systems

Infineon unveils 650 V CoolGaN switch to streamline power conversion across EV, solar, and data center systems

May 13, 2025
0
Malaysia becomes critical node in global AI GPU supply chain

Malaysia becomes critical node in global AI GPU supply chain

May 13, 2025
0
TSMC's U.S. fab capacity fully booked amid strong demand from major clients

TSMC's U.S. fab capacity fully booked amid strong demand from major clients

May 13, 2025
0
GlobalWafers to launch Texas fab, first 12-inch silicon wafer plant in US

GlobalWafers to launch Texas fab, first 12-inch silicon wafer plant in US

May 12, 2025
0
Copyright © 2017-2025 SemiMedia. Designed by nicetheme.
  • Please set up your first menu at [Admin -> Appearance -> Menus]
  • electronic components news
  • Electronic components supplier
  • Electronic parts supplier
  • Infineon
  • Electronic component news
  • Renesas
  • Vishay
  • STMicroelectronics
  • NXP
  • TDK

SemiMediaEdit

Administrator