Apple will need to pay more for the chips in its devices and may pass rising costs on to customers, according to sources speaking to Nikkei Asia.
TSMC, Apple’s main chip supplier, is in the process of increasing its prices following wider inflation caused by the global chip supply shortage. The company’s planned price rises are said to be the most substantial chip price hikes in a decade.
TSMC was already around 20 percent more expensive than its rivals, but smaller foundries have ramped up their own prices due to higher material and logistics costs, and TSMC has committed to $100 billion in new investment over the next three years, motivating the company to increase its prices so that these added costs can be passed on to clients.
Read more at MacRumors.com