China Taiwan's electricity prices rose 8.4%, wafer foundry costs may rise

（The picture comes from the Internet）

　　According to relevant media sources, the electricity price increase in Taiwan, China, with an average increase of 8.4%, will be implemented on July 1.

　　According to the news, the average price of high-voltage electricity will be adjusted from NT$2.6990/kWh to NT$3.1039/kWh, and the price of ultra-high voltage will be adjusted from NT$2.2354/kWh to NT$2.5707/kWh. It is reported that the electricity price has increased significantly this time, and semiconductor manufacturing is a high energy consumption industry, especially in the use of water and electricity. This price increase may lead to an increase in the manufacturing cost of semiconductor manufacturers.

　　In response to the increase in electricity prices, several major fabs in Taiwan have responded.

　　TSMC, a major electricity consumer, responded by supporting the rise in electricity prices and respecting relevant decisions. According to TSMC's public data, TSMC's electricity consumption will be 16.9 billion kWh in 2020, an increase of about 20% in 2021, about 20.3 billion kWh, and its power consumption may be further increased in 2022. Because the daily power consumption of EUV lithography machine reaches 30,000 kWh, and TSMC will mass produce 3 nanometers in the second half of this year, and other advanced processes are also being accelerated.

　　Recently, according to media reports, TSMC will increase the price of most processes by about 6% from January 2023. The industry speculates that this may be related to the electricity price increase, because it will increase the production cost of TSMC.

　　UMC said that the company is committed to a long-term commitment to energy conservation and carbon reduction. Facing the adjustment of electricity prices due to rising international oil prices, UMC will continue to improve production efficiency.

　　Power Semiconductor said that the increase in electricity tariffs will lead to higher costs, which is very helpless. However, PSMC emphasized that companies care more about the adequacy and stability of power supply.

　　In addition, it is reported that in the face of rising electricity prices in Taiwan, silicon wafer manufacturer Universal Crystal also responded.

　　Xu Xiulan, chairman of Universal Chip, said that Taiwan is the main manufacturing base of Universal Chip, but rising electricity costs pose a challenge to the company, and the company is now prompting local chip makers to diversify their manufacturing bases, or no longer regard Taiwan as a Preferred. In addition, Xu Xiulan mentioned that Universal Crystal will maintain the established expansion plan, but due to the lack of labor, rising construction costs and prolonged equipment delivery, some of the expansion progress may be delayed by one quarter.

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