(Updates with background on chip shortage)
Aug 26 (Reuters) - Taiwan Semiconductor Manufacturing Co , the world’s largest contract chip manufacturer, is raising prices by as much as 20%, the Wall Street Journal reported on Thursday, citing people familiar with the matter.
The company plans to increase the prices of its most advanced chips by about 10%, while less advanced chips used by customers like auto makers will cost about 20% more, according to the report. (on.wsj.com/3zjYYEp)
The higher prices will generally take effect late this year or next year, the Journal reported, a move that is expected to result in consumers paying more for electronics.
TSMC did not immediately respond to a Reuters request for comment.
A global semiconductor chip shortage has caused a major delay in manufacturing activity, with automakers cutting down on production and electronic device makers struggling to keep up with a pandemic-led surge in demand for phones, TVs and gaming consoles.
Last month, TSMC said the auto chip shortage would gradually ease for its customers from this quarter but it expected overall semiconductor capacity tightness to extend possibly into next year.
Taiwan is doing all it can to address the global shortage of semiconductors, Economy Minister Wang Mei-hua said on Tuesday after talks with the newly appointed de facto U.S. ambassador in Taipei. (Reporting by Arunima Kumar in Bengaluru; Editing by Saumyadeb Chakrabarty)