HSINCHU, TAIWAN: According to a Reuters report on Yahoo Finance, Taiwan Semiconductor Manufacturing Co. Ltd (TSMC) may raise prices of high-end chips.

"Average selling prices have been falling and profits have been under pressure, and we have to work together to create value," Jason Chen, a company vice president in charge of global sales and marketing, told a TSMC technology symposium.

The dilemma of ASPs was touched upon at the recently concluded IEF 2008 in Dubai, where Maclolm Penn, CEO, Future Horizons, said that the current outlook continues to be uncertain with risks all on the downside. "ASPs are the key to recovery, but always the first line of defence. ASPs could still derail 2008, but the trends are encouraging."

TSMC's comment comes close on the heels of the head of Samsung Electronics' semiconductor division saying that the bottom has been reached in the long-suffering memory market. However, the industry should not expect significant price rises at the moment.

Clearly, the memory market, as well as the high-end chip segment need to be closely monitored in the coming months.