On November 6th, Caixin Society reported that TSMC has obtained approval from Nvidia to raise prices next year. The price of 3nm process may increase by up to 5%, and the price of CoWoS packaging may increase by about 10% to 20%. The actual increase will depend on TSMC's capacity growth.
On November 2nd, Morgan Stanley released a report stating that wafer foundry giant TSMC is considering raising prices for its highly demanded 3nm process and CoWoS advanced packaging technology to meet the huge demand.
As one of TSMC's largest customers and the biggest beneficiary of the AI era, NVIDIA plays a crucial role in TSMC's future performance growth. For TSMC, how to meet the huge demand of the demand market has become a challenge. Industry insiders say that Nvidia's nod will make most supply chain manufacturers accept price increases, and ultimately price changes will affect the entire supply chain.
Morgan Stanley's report also indicates that TSMC's gross profit margin is expected to soar in 2025, ultimately translating into the company's robust earnings.