Towards a further rise in the price of semiconductors? Electricity to increase by up to 30% in Taiwan

When the electricity bill of a company more than 10,000 kilometers from France can change the price of your next computer.

There is no shortage of reasons to fear – or even to verify – an increase in the price of semiconductors, between generalized inflation, tensions on raw materials and increased demand.

However, a little news seems likely to join “the party” as the electricity market on the island of Taiwan will lead to an increase in the bills of the industry giants.

Stabilizing Taiwan Power Company’s revenue

Quoted by our colleagues from Tom’s Hardwarea report from TrendForce suggests the worst while, traditionally, the cost of electricity in Taiwan is among the lowest in the world.

Lately however, the finances of the Taiwan Power Company had become a matter of concern and to stabilize the situation negotiations had been undertaken. The objective? Achieve a concerted price increase in the field of electricity for both the residential population and the island’s industrialists.

The current plan envisages the creation of several categories for the residential population and three other categories for industrialists. Let us recognize that at Clubicit is these last categories that interest us the most.

A 20% to 30% increase in TSMC’s bill?

Indeed, according to the report published by TrendForce, these categories for industrialists subdivide the sector into three levels with increases in the price of electricity linked to consumption.

Logically, the least greedy manufacturers would face more modest inflation while the bill for the largest companies could reach up to 30%. One clarification, however: if these large consumers can prove that they have reduced their electricity demand, they will be able to escape the biggest increases.

A modern company like TSMC could logically benefit from this “clearing”, but other major players are not in this case and there would still be an increase undoubtedly greater than 20% in the price of its electricity. An increase which will necessarily have an impact at least in part on the prices for its partners and, consequently, on us.

For the moment, uncertainty remains, but while certain prices – DRAM and SSD in particular – are already on an upward trend, things could therefore get worse soon.

Source : TrendForce, Tom’s Hardware