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TSMC Expected to be Affected by Increased Electricity Costs in Taiwan

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rjohnson11
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2022/06/29 00:08:29 (permalink)
https://www.techpowerup.com/296288/tsmc-expected-to-be-affected-by-increased-electricity-costs-in-taiwan
 
The island of Taiwan is in many ways very much still stuck in an era where the government controls most utilities and where there is little to no competition. For example, the government controls fuel prices, be that for your motor vehicle or for cooking and heating. This also applies to the cost of electricity in most cases and the Ministry of Economic Affairs has announced that the electricity price will increase by up to 15 percent for high usage customers, which translates to the industry. The increase might sound tiny at just over 1.3 cents per kilowatt hour, for a total cost of 10.43 cents per kWh. However, a company like TSMC that uses a lot of electricity, is expected to see an increase in costs of at least US$135 million per year, according to some Taiwanese news sources, while others claim it'll be as much as US$270 million.

TSMC does in all fairness produce some of its own electricity thanks to solar panels on many of its buildings and the company has also invested heavily in renewable energy. In fact, TSMC has bought up almost all available renewable capacity in Taiwan and the company is committed to using 100 percent renewable energy in the long term. Currently a mere 8 percent (based on 2020 estimates) is coming from TSMC's own efforts, but the company should be at somewhere around 12-15 percent overall. Even so, these extra costs are likely to be reflected in future customer pricing. It's the first price hike in four years, but as Taiwan is a manufacturing nation, TSMC is unlikely to be the only company affected, but the price hike is related to global inflation and is targeting high-usage businesses and consumers alike.
 
No doubt increased costs will be passed along to their customers. 

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    Cool GTX
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    Re: TSMC Expected to be Affected by Increased Electricity Costs in Taiwan 2022/07/01 12:46:27 (permalink)
    those who prepaid & locked in their orders - are probably protected ... details would be in those contracts.  This might just hit TSMC's bottomline

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    kram36
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    Re: TSMC Expected to be Affected by Increased Electricity Costs in Taiwan 2022/07/03 01:20:10 (permalink)
    It will just be passed onto the consumer.
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    rjohnson11
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    Re: TSMC Expected to be Affected by Increased Electricity Costs in Taiwan 2022/07/03 02:00:05 (permalink)
    kram36
    It will just be passed onto the consumer.


    Correct and if not now, then later. 

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