The world’s largest chipmaker and Apple’s main supplier, TSMC, is facing higher prices for chip materials, Bloomberg reports. This will lead to a rise in the price of all new gadgets, including the iPhone 14 and iPad Pro on M2.
The Japanese chemical firm Showa Denko KK, which supplies TSMC with the most important materials for making chips, is forced to sharply increase prices due to a global shortage of chips, according to the publication. Other component manufacturers and material suppliers are taking similar steps in the semiconductor industry amid broader price cuts.
Price hikes for Showa Denko KK, as a key upstream supplier, are expected to squeeze margins and force customers like TSMC to pass on the increased costs to their own customers, including Apple.
In other words, an increase in the cost of materials for the production of chipsets will lead to a rise in the cost of end products, including iPhone, iPad, Mac, Apple Watch and AirPods.
Interestingly, last year Nikkei Asia analysts warned that Apple may be forced to raise prices for gadgets due to the rise in price of chips.
Bloomberg believes that the situation will not improve until at least 2023.
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