The global chip shortage continues to afflict much of the technology industry, and Samsung is now reportedly boosting the prices of its microchips for foundry clients by up to 20%.
The South Korean IT behemoth is now in discussions with numerous clients about price increases for chip-manufacturing contracts, perhaps hiking rates by 15-20 percent to match rising production costs.
One of the causes cited in the research is global instability, which includes the war in Ukraine, the COVID-19 lockdown in China, and rising interest rates and inflation around the world.
company’s spokeswoman declined to comment, but considering industry trends over the last year, the move would not be surprising.
Taiwan Semiconductor Manufacturing Co and United Microelectronics Corp. both aim to raise prices by a single digit percentage either later this year or early in 2023, with the former previously raising costs by 20% in 2021.
Samsung’s price increase is also due to its $36 billion USD investment in its chip sector last year.
Which provided the company with access to cutting-edge production technologies such as extreme ultraviolet printing machines in an attempt to dethrone both Intel and TSMC.
And, as it faces more expensive logistics, so will the companies making final goods utilizing Samsung-manufactured components, so we should all brace ourselves for much higher tech prices as the year unfolds.
To read our blog on “Google and Samsung have partnered to make it simpler to sync fitness data across applications,” click here