Raise console prices to reduce shortages?

[Conina]

VAMatt said:

Matsku said:

The reason why there are shortages right now is unprecedented demand which has lead to chipmakers not being able to make enough chips so MS and Sony couldn't just magically buy more chips as they don't exist.

There are far more chips produced than Sony or MS need.  They don't need all chips, they just need more.  So, they just need to get a tiny bit larger piece of the pie, and I'm sure they can pay their way to that.  

TSMC has contracts to uphold with every of their customers and their capacities are 100% booked for years in advance (probably already overbooked).

Half a year ago they were only taking new orders for 2nd half-2022:

TSMC chip manufacturing capacity is fully booked through the 1st half of 2022, and was booked based on client order history and projections of end-demand to avoid overbooking, media report. TSMC will take orders for 2nd half-2022 in late 2Q this year. $TSM #semiconductor

— Dan Nystedt (@dnystedt) March 22, 2021

Now they are probably taking orders for 1st half-2023.

So which contract should TSMC break in favor of MS + Sony?

And how much money from MS + Sony would weight up the costs (penalties for breach of contract, costs for adapting the production lines...) and bad reputation (unreliable contract partner)?

Last edited by Conina - on 05 September 2021