The Wall Street Journal reported on Thursday that Taiwan Semiconductor Manufacturer (TSMC), the world’s largest contract chip maker, will raise prices by up to 20%.

According to the report, the company plans to increase the price of the most advanced chips it produces by about 10%, while raising the price of less advanced chips used by customers such as car manufacturers.

The newspaper said higher prices would come into effect later this year or later next year in a bid to boost consumer spending on electronic devices.

DSMC did not respond to a Reuters request for comment.

The global shortage of semiconductor chips is causing significant delays in production activities as car manufacturers reduce production and electronics manufacturers struggle to meet the epidemic-led demand for phones, televisions and gaming consoles.

Last month, TSMC said the chip shortage would gradually decrease for its customers starting this quarter, but expects the overall semiconductor production capacity shortage to continue next year as well.

Taiwan’s Economy Minister Wang Mei-hwa said on Tuesday that Taiwan was doing all it could to address the global semiconductor shortage after talks with the newly appointed US ambassador to Taiwan.

(Reuters)