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TSMC and Micron are preparing for large increases in electricity prices in Taiwan. This will impact the prices of final products


TSMC and Micron are preparing for large increases in electricity prices in Taiwan.  This will impact the prices of final productsThe problem of energy prices remains a significant problem in our geographical area. However, it also applies to the Far East, where most chips are still produced. All types of mass production involve correspondingly high electricity consumption. This is also the case here. Large manufacturing plants in Taiwan are preparing for significant increases in electricity prices. It will certainly not be possible to avoid passing some of them on to consumers.

The largest production plants in Taiwan should soon expect an increase in electricity prices by 20-30%. Although electricity is relatively cheap there, the increase will certainly also affect the prices of final products, including chips and devices based on them.

TSMC and Micron are preparing for large increases in electricity prices in Taiwan.  This will impact the prices of final products

The United States plans to become a significant producer of modern chips by 2030

A significant increase in electricity prices will affect all customers in Taiwan. However, the biggest impacts will affect the so-called “super consumers” who consume the most energy. Any consumer who has consumed more than 5 billion kWh per year over the last two years can expect bills to be up to 30% higher. Other manufacturers of this type include TSMC and Micron. However, if the company manages to prove that it has gradually reduced electricity consumption over the last two years, it can count on more moderate increases. Industrial customers who consumed less than 5 billion kWh in the above-mentioned period will be able to fall into one of two groups eligible for lower increases. Price increases are expected in April.

TSMC and Micron are preparing for large increases in electricity prices in Taiwan.  This will impact the prices of final products [2]

TSMC is preparing to build a factory that will produce chips using the 1 nm technological process

Ultimately, we cannot rule out the possibility that the companies most crucial to the Taiwanese economy will receive some preferential conditions or government subsidies. According to sources, however, it is unlikely that the value of the increases will be reduced below 20% in these cases. It is worth noting that electricity prices in Taiwan are not particularly high by current global standards. Last year they were frozen at around USD 0.10 per 1 kWh, although many companies had already recorded increases of around 15%. Regardless, you can be sure that another noticeable increase in electricity prices will be at least partially passed on to the customers of chip producing companies, and ultimately also to the recipients of end products.

Source: TrendForce, Tom’s Hardware



Mr.Mario
Mr.Mario
I am a tech enthusiast, cinema lover, and news follower. and i loved to be stay updated with the latest tech trends and developments. With a passion for cyber security, I continuously seeks new knowledge and enjoys learning new things.

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