The semiconductor crisis is likely to see its effects continue this year.

AMD, Intel, and Nvidia are expected to raise prices for processors (CPUs), graphics processing units (GPUs), and ASICs in 2022.

According to a DigiTimes report, this increase is linked to an increase in foundry costs.

TSMC raises prices

The three major groups AMD, Intel and NVIDIA plan to increase the price of their chips by up to 20%.

This decision would be linked to a decision by TSMC.

According to a report by DigiTimes, semiconductor foundry TSMC applied a 10-20% price hike to its mature and advanced semiconductor manufacturing lines.

CPUs made using sub-7 nanometer etching nodes are the most likely to see their price increase.

And that's partly because of last year's chip shortages and material costs.

We call “mature and advanced” nodes that have been in production for some time and have already been replaced by more efficient and advanced processes.

The "mature and advanced" nodes affected by the price hike are expected to power next-generation GPUs and CPUs such as AMD Ryzen 6000H/U, AMD Ryzen 7000 GPUs, Intel ARC Alchemist, and NVIDIA GeForce RTX 40.

Cascading effects

Since TSMC has increased the prices of its thinnest nodes, AMD is expected to increase the prices of all of its processors based on foundry 7nm and 5nm parts.

In short, this will concern AMD Zen 2 processors and future Zen 4 processors expected at the end of 2022. Namely that AMD's RDNA2 and future RDNA 3 graphics cards are also based on TSMC's 7nm process.

Likewise, Nvidia's upcoming graphics cards will use TSMC's cutting-edge 5nm technologies.

According to DigiTimes, Nvidia has already made prepayments to TSMC for long-term orders of 5nm silicon.

An order for its new series of GeForce RTX 40 GPUs.

TSMC's price hike added to the shortage could therefore lead to explosive prices in the long term - for both producers and consumers.

Products sold at higher prices

As a result of TSMC's price hike, Intel may increase those of its consumer products.

Being itself a founder, Intel still subcontracts its chips to TSMC.

Thus, even if the shortage of chips should ease by the end of the year, there is no guarantee that the prices of processors and graphics cards will decrease.

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