As foundries begin to raise prices in earnest, the unit prices of image sensors, power semiconductors, and other products are rising significantly. Consequently, price increases are expected to accelerate across all IT products, including smartphones and cameras.

TSMC announced on the 31st of last month that it would not provide previous benefits to customers who place semiconductor orders for one year starting December 31, 2021.

According to foreign media, semiconductor production orders from major customers such as Apple and Qualcomm had previously been discounted by a few percent, but with the cancellation of this discount, the price was actually raised by 1 percent.

TSMC also announced that it would raise the price of 12-inch wafers. Local Taiwanese media predicted that the price increase could be as high as 25%. TSMC also announced that it would increase foundry prices for driver chips starting in April.

Foundry manufacturer SMIC, along with TSMC, also reportedly notified customers of a price increase on April 1st. SMIC stated that orders already in production would remain at the original price, while future orders would be processed at the new, higher price. The price increase is known to be between 15 and 30%.

This price increase is attributed to large-scale investments by foundries and a severe semiconductor supply shortage.

TSMC recently announced plans to invest $100 billion in capacity expansion over the next three years.

GlobalFoundries also announced plans to invest $1.4 billion this year to build a factory and double that amount next year.

Meanwhile, semiconductor experts predicted that the semiconductor supply shortage will continue into 2022.

This means that the price increases by global foundries such as TSMC are just beginning.

In China, it is reported that prices of IT components are rising and there is a serious shortage of components.

An official from Oppo's sub-brand Realme said, "This year, we have seen a shortage of not only chips but also parts such as batteries and sets," adding, "We expect the price of finished products to rise as well due to the increase in the price of parts."

In particular, the semiconductor shortage has worsened since the second half of 2020, spreading beyond MCUs and power semiconductors to almost all types of products produced by semiconductor foundries, and circuit boards and basic components are also reportedly running out of stock.

According to China Business News, the first full-scale price increases for IT products such as smartphones and digital cameras in China are expected in the second half of 2021, and the extent of the price increases is not expected to be very large.

Accordingly, Chinese mobile phone manufacturers are struggling to devise strategies for the supply and demand of components such as semiconductor chips, and are busy devising strategies for how to adjust the supply and demand balance in preparation for a surge in inventory due to an eased supply and demand situation in the future. It is being reported.