Sep. 28, 2022 11:23 AM ET Taiwan Semiconductor Manufacturing Company Limited (TSM), AAPLBy: Chris Ciaccia, SA News Editor
Taiwan Semiconductor (NYSE:TSM) is slated to raise prices on its customers starting in 2023, but the company's largest, Apple (NASDAQ:AAPL), has reportedly told the global foundry no deal.
According to Chinese news outlet Economic Daily News, Taiwan Semiconductor (TSM) wanted to increase the price of the process for its 3 nm process by 3%, which may be used in the A17 chip in some of Apple's (AAPL) Mac computers and perhaps next year's iPhone. However, the tech giant refused and said no, the news outlet said, citing sources.
Taiwan Semiconductor (TSM) and Apple (AAPL) did not immediately respond to a request for comment from Seeking Alpha.
In May, it was reported that Taiwan Semiconductor Manufacturing (TSM) had started to tell some of its customers that it will raise its prices between 5% and 9%, starting next year, due to inflation concerns, rising costs and its expansion.
Cupertino, California-based Apple (AAPL) is Taiwan Semiconductor's (TSM) largest customer and some reports have suggested that it accounts for as much as 25% of the global foundry's annual revenue.
Taiwan Semiconductor (TSM) shares fell 2% in early trading on Wednesday, while Apple (AAPL) fell nearly 3.5% following a report that it was pulling back from its plans to boost iPhone production due to a lack of demand for its overall product line.
Earlier this week, it was reported that some of Taiwan Semiconductor's (TSM) "major" fabless customers have started cutting back wafer starts in 2023. https://seekingalpha.com/news/3886783-taiwan-semiconductor-asked-for-2023-price-increase-from-apple-tech-giant-said-no-report