In response to President Trump's pledged tariffs affecting numerous countries, the Taiwan Semiconductor Manufacturing Company (TSMC) is considering substantial price hikes in chip production. Insiders reveal that TSMC is contemplating an increase of up to 15 percent, far exceeding the initially proposed five percent rise. These adjustments aim to alleviate potential losses arising from the tariffs, which have sent various industries into a state of uncertainty.
However, these increases are unlikely to remain isolated within TSMC; they will likely trigger a wave of price adjustments across consumer markets. Products utilizing chips produced by TSMC may soon carry significantly higher price tags, ultimately impacting consumers who might find it difficult to adjust to the escalated costs. Brands struggling with decreased profit margins will likely transfer these expenses onto consumers. For instance, Samsung faces challenges as Qualcomm plans to increase prices for the Snapdragon 8 Elite Gen 2. If Samsung does not successfully adhere to its Exynos developments and relies on Snapdragon, the subsequent Galaxy smartphones may see an increase in price or feature less expensive components like displays and cameras.
At present, TSMC is evaluating the impacts of Trump's tariffs on its business operations, and it is highly probable that the planned price increases will be implemented, ultimately burdening consumers with the additional costs.
Samsung Galaxy S25 series uses the Snapdragon 8 Elite across the board. | Video credit — Samsung
Tim Cook can convince President Trump to spare the company, that would likely give the iPhone a considerable cost advantage over competitor devices.
