THE CRUNCH
AMD is reportedly preparing to raise prices across its product range due to rising wafer costs from TSMC. The move, which would see a 10% increase applied to graphics cards, chipsets and possibly central processing units, is a direct response to upstream supply chain pressures. As a fabless chip designer, AMD cannot absorb the increased wafer costs from its manufacturing partner and is expected to pass these expenses
The price adjustments would affect almost every product in AMD's portfolio, marking one of the first times the company has increased the cost of its motherboard chipsets. This development comes as TSMC is reportedly hiking wafer prices across its nodes, a change that will force AMD to adjust its margins. While AMD has previously raised GPU and CPU prices due to demand and memory costs, this specific move targets the entire ecosystem, including the silicon on the motherboard.
The impact of these hikes will likely be felt by consumers and system builders. Since AMD cannot negotiate wafer rates, the cost increase must be absorbed by partners and end users. This follows a recent trend where AMD has launched budget-friendly options, such as the Ryzen 5 5500F, to help builders manage costs. The simultaneous push for higher prices could complicate the affordability of new systems in the near term.