Get to know why phone prices will jump high in 2023
Taiwan is the biggest manufacturer of semiconductors and chips that are used in almost all tech products. Semiconductors and chip export played a major role in uplifting Taiwan’s economy. Being one of the biggest manufacturers, tech giants are dependent on companies based in Taiwan which can be a deciding factor in driving the cost of these technological products. Now Taiwan Semiconductor Manufacturing Company Limited will increase the price of chips in 2023.
The new year is around the corner which will cause a surge in the number of buyers of these products. But as time passes, the prices of phones will go up. Because the majority of phone brands are dependent on chip manufacturing companies based in Taiwan almost all companies’ phones’ prices will go up.
The most probable reason for this hike is global inflation. This inflation is caused by war and post-COVID recovery. Companies are trying to reduce their dependence on Taiwan for chips and semiconductors as they become the most vulnerable domain when it comes to Taiwan, China, and America triangle.
What does this Chip price increase mean?
This means that this increase in chip prices because of shortage will be passed on to the direct consumer. Electronic items are going to have a raise in their pricing making them costlier than the previous fiscal year. The problem of chips has even created a problem in the Auto sector where less availability means fewer cars to be delivered to the final consumer.
It’s not like the US is not taking any measures to control this price hike. The US recently passed the CHIPS and FABS Acts, this act provides roughly 280 billion dollars in new funding to boost domestic research and manufacturing of semiconductors in the United States.
So far none, as this scarcity of semiconductors is increasing day by day, it would mean that cost of electronics is also going to rise in the coming years and things like cell phones, TV, Smartwatches, and many others will become more and more pricey.