Samsung raises chip prices up to 20%

According to EngadgetSamsung is the latest in the semiconductor industry to raise chip prices as it tries to offset rising raw material procurement costs amid the crisis global supply chain. According to Bloomberg, companies that need chips made on modern processes will face the biggest price hike, which will come into effect in the second half of the year.

Samsung was forced to increase chip prices to offset rising material costs reuters

The report says that Samsung has completed negotiations with some of its customers, but the Korean company is still in the process of discussing with other customers. In the first quarter of 2022 revenue report, the segment business Samsung foundry has achieved the highest sales ever.

While optimistic about its future, Samsung also believes that global component shortages continue to affect its business. Production costs are also increasing by an average of 30%, which means that enterprise Mining has to charge extra money to make a profit. Last year, rival foundries like TSMC also raised prices by 20% and are expected to price increase even higher in 2023.

“This is an inevitable move by Samsung,” said Bloomberg Intelligence analyst Masahiro Wakasugi. Some customers may accept a higher price if they want to receive the chip sooner than other companies.”

With the work Samsung They have advanced equipment that their competitors don’t have, and other foundries have also raised their prices, so it wouldn’t be surprising if their customers were willing to accept the new prices. Since the increase in chip prices affects the entire industry, it would not be surprising if the prices of cars, smartphones, and game consoles good game Other devices also increase in price in the future.