Apple Face Silicon Chip Price Hikes from TSMC—Cupertino Releases to be More Expensive?

Apple is reportedly facing a massive price hike on its Silicon chips that TSMC creates for them, and these chips are what the Cupertino company designed for its devices, including the Mac and iPhone. The chip industry is only getting its traction from the recent shortage, but it also faces inflation from the many global economic changes.

Apple Face Silicon Chip Price Hike from TSMC

According to a report by Bloomberg, Apple got a warning from a known TSMC supplier that it would face a price hike for its commissioned manufacturing of the Silicon chips that the Cupertino company designed. These are the same chips that power the iPhone, iPad, and Mac that complete their processes and provide power for all.

However, other chips are also affected by Apple as it sources the internal Silicon chips for the AirPods and Apple Watch ventures, with the H1 and S1 chips, respectively. The report says that a Japanese supplier, Showa Denko K.K., provides the components for TSMC's chip fabrication, and the company warns of a price increase that will also come in 2023.

Will Apple Devices Be More Expensive?

According to MacRumors, the semiconductor industry is also facing the same price hike for other manufacturers and suppliers in the present times. This change is inevitable and focuses on the many features the company aims to bring to the world for its upcoming creations that will power future Apple devices.

It is unknown if the components price hike would change the prices and make the Apple devices more expensive once it goes on sale.

Apple and its Silicon Chips

Apple is a fan of Silicon chips and their creation, focusing on using the silicon component to create an integrated circuit to bring its necessary processes and functions to the device. One of its most famous silicon chips is the M-series chip that recently transitioned from using Intel's creation to a design from the company that brings all the processes into one 5nm device.

However, that is not the only Silicon chip from Apple available on its devices in the company's current releases.

Its early use of Silicon chips for the A-series commonly found on iPhones and iPads is the inspiration behind the M-series from the Cupertino company. Its upcoming A16 Bionic chip gains speculations from reports, claiming that the new processor would not have significant differences from the A15.

Apple's focus on the Silicon chips brought it great fame, despite being designers only and letting TSMC do all the hardware stuff for them in its manufacturing. Nevertheless, it still faces a significant change in its prices as the world struggles to produce these internal components that future devices will enjoy with their use and function that complete the devices.

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Written by Isaiah Richard