There is time when the smartphone price is getting higher, and it looks like nothing stops that trend. Market dynamics and global events such as Covid-19 pandemic, however, at least pause on it or make mobile phones more affordable but still more attractive to consumers. Unfortunately, other situations throughout the world cause havoc in various industries with the effect of ripple at product prices. One unfavorable effect will be an increase in the price of smartphone next year now after TSMC, the largest semiconductor foundry in the world, has announced the biggest price increase in a decade.

The fact that it took a long time for Taiwan Semiconductor Manufacturing Co. to substantially raise the price almost a little miracle. Then again, casting has large customers such as Qualcomm, Apple, Nvidia, and more on the list and have been charged 20% more than rivals. Unfortunately, things don’t look good for the whole industry, and TSMC makes the biggest price increase which will eventually affect the price to be paid by the buyer in the end.

There are various factors that lead to what is billed by some surprising announcements, including the fact that other casting has also increased their prices. Material costs and logistics costs have encouraged this semiconductor producer to increase their costs, while the device makers rushed to fill their chip supplies have forced TSMC and its competitors to push their pipes to the limit.

That is why the increase in TSMC prices is also a strategy to get rid of customer bookings twice. These clients try to secure the production room and support by placing orders more chips than they need, the slope figure needed to get a better picture of market demand. With a shortage of global chips, the practice has become more common when the manufacturer scrambles to make their devices prioritized.

Customers have up to 1 October to negotiate increased costs, and large clients such as Qualcomm, Apple, and Nvidia are likely to do it. Unfortunately, it still means that consumers will immediately expect a higher price. TSMC does intend to respect orders that are at the price they make, so that change may not be felt until next year.