TSMC (TSM.US) plans to raise prices for advanced-node and mature-node chip foundry services by as much as 10% next year, reflecting rising costs for materials, manufacturing equipment and construction of new overseas chip plants, Nikkei reported, citing sources. Spurred by the news, TSMC ADRs spiked 3.5% in pre-market trading.

TSMC reportedly discussed the price increases with customers, involving 7-nm and more advanced process technologies, which accounted for about 77% of the company's 2Q revenue. Sources said the base price increase ranges from 5% to 10%, depending on customers and products.

For mature processes including 12-nm, 16-nm and 28-nm technologies, TSMC plans to raise prices by as much as 10%. Sources said negotiations on the price increases began last month and will be finalized in July, with the new pricing taking effect at the beginning of next year.

TSMC's major customers include NVIDIA (NVDA.US), Apple (AAPL.US), Google, Amazon (AMZN.US), Qualcomm (QCOM.US), ARM (ARM.US) and MediaTek, among other leading chip developers.
~

AASTOCKS Financial News
Website: www.aastocks.com

SG Top Picks
Stock & Type	Code	Strike(Call Level)	Last	Effective Gearing
Nvidia (C)	11185	275 (-)	0.134	6.0 X
Nvidia (P)	11090	168 (-)	0.161	4.2 X
APPLE (C)	11132	300 (-)	0.590	6.2 X
APPLE (P)	11063	248 (-)	0.027	11.4 X
ALPBE (C)	11184	470 (-)	0.153	7.5 X
AMZN (C)	11070	245 (-)	0.325	7.0 X
AMZN (P)	11137	180 (-)	0.075	5.6 X
AMD (C)	11214	700 (-)	1.020	3.3 X