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Semiconductors

Chip prices set to rise into 2022 as TSMC hikes rates

Semiconductor and electronics prices are set to rise absent major economic slowdowns

TSMC's move to raise its fees for chip production services took many in the industry by surprise.    © AFP/Jiji

TAIPEI/HSINCHU, Taiwan -- The price of chips -- and the electronic devices they power -- are on track to rise into 2022 as the world's biggest contract chipmaker joins its rivals in ramping up production fees.

Prices of semiconductors have been climbing since the last quarter of 2020 amid a global supply crunch. But news that Taiwan Semiconductor Manufacturing Co. was preparing its biggest price hike in a decade still came as a shock to some, bringing home just how entrenched chip price inflation has become.

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