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Samsung reportedly increasing component prices by up to 20%

By Cookie Monster - on 17 May 2022, 12:00am

Samsung reportedly increasing component prices by up to 20%

Image source: 9to5Mac

Samsung is planning to increase chipmaking prices by up to 20% this year. 

Sources familiar with the matter told Bloomberg that Samsung is discussing with its customers about raising chipmaking prices as much as 20% this year. Chips built on legacy nodes are said to see steeper price hikes, and the new prices are set to be enforced from the second half of this year. 

Samsung's decision to raise chipmaking prices is driven by multiple factors such as the Ukraine war, Covid-19 lockdowns in China, rising interest rates and inflation. Consumer electronics such as phones, tablets and notebooks are expected to cost more.

TSMC and United Microelectronics Corp (UMC) are also preparing a second round of price hikes; TSMC and UMC told customers that prices would be raised by about 5 to 8% and 4% respectively.

With the global chip shortage expected to last into 2024, it is likely that chip makers may be forced to raise their prices in the next two years to cover the costs of materials and logistics.

Source: Bloomberg

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