Web Excursions 2021-08-27

TSMC hikes chip prices; Apple hikes the price for the spot of the default search engine.


TSMC hikes chip prices up to 20% amid supply shortage - Nikkei Asia

  • Contract chipmaking giant Taiwan Semiconductor Manufacturing Co. told clients Wednesday that it plans to raise prices on products by as much as 20%,

    • in what would be the company's steepest single increase.

  • The price increases and the time frames for the hikes differ depending on the client

TSMC hikes chip prices up to 20% amid supply shortage | Hacker News

StephenSmith:

  • I'm in charge of sourcing components for multiple companies right now. I believe they could double (100%) prices and companies would pay it.

  • There's chips that I'm sourcing from obscure places in China just to get the part and paying whatever price they ask.

  • Designers are getting overwhelmed because they're having to redesign boards for components that are available, only to realize by the time they finish the changes, the part they redesigned for is also out of stock.

11thEarlOfMar:

  • We are currently paying a chip broker $6.30 for an Infineon chip we typically buy by the 100,000s for $0.47.

  • Cuz without them, our customers cannot sell their $10,000,000 product.

    • which are machines that make chips, each of them using about 1000 of these chips.

      • which are 24 volt digital output drivers.

  • We're also getting crushed on Xilinx FPGAs, certain Cypress CPUs, AD MUXes, Relay switches... It's something new every week.

PragmaticPulp:

  • Supply shortage is another way of saying demand excess.

    • I don’t see much evidence that TSMC ever really slowed production,

    • at least for their most advanced processes that are in high demand.

  • This is yet another way we’re all forced to pay the price for cryptocurrency.

    • As long as GPUs are profitable for mining, they will be purchased and put to work.

    • The saddest part is that each additional GPU added to the mining networks only makes the overall system less efficient.


Analysts: Google to pay Apple $15 billion to remain default Safari search engine in 2021

  • In the investor note, seen by Ped30, Bernstein analysts are estimating that Google’s payment to Apple

    • will increase to $15 billion in 2021, and

    • to between $18 billion and $20 billion in 2022.

  • The data is based on

    • “disclosures in Apple’s public filings as well as

    • a bottom-up analysis of Google’s TAC (traffic acquisition costs) payments.”

Traffic Acquisition Cost (TAC)

  • Traffic acquisition costs are payments that internet search companies make to affiliates and online companies for directing traffic to their websites.

    • TAC is a big source of expenditures for online search firms like Google and Yahoo.

    • Investors watch the TAC of companies to gauge their financial and performance strength.

    • If TAC increases year over year for a company, it negatively impacts profit margins.

  • Google highlights increasing TAC in the "Risk Factors" section of its 2018 annual report filing, SEC form 10-K.

    • “... our expectation that our traffic acquisition costs (TAC) and the associated TAC rates will increase in the future.”