Samsung Considers Raising Chipmaking Prices by Up to 20%, Joining TSMC’s Plan for Another Price Hike

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Image: Samsung

Samsung is currently in talks with foundry clients about raising chipmaking prices by up to 20%, according to a report from Bloomberg amid “an industry-wide push to hike prices to cover rising costs of materials and logistics.” The news follows a similar report shared by Nikkei Asia last week, which revealed that the world’s biggest contract chipmaker, TSMC, is also planning to raise prices due to reasons that include looming inflation. TSMC plans to raise prices by “single-digit percentages” for both its mature and advanced chip technologies. These giants are responsible for more than two-thirds of global capacity for outsourced chips, as noted in Bloomberg’s report.

Image: Bloomberg

Contract-based chip prices are likely to rise around 15% to 20%, depending upon the level of sophistication, according to people familiar with the matter, who asked not to be identified due to the sensitivity of the issue. Chips produced on legacy nodes would face bigger price hikes, they said. New pricing would be applied from the second half of this year, and Samsung has finished negotiating with some clients, while it is still in discussions with others, the people said.

Sources: Bloomberg, Nikkei Asia

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Tsing Mui
News poster at The FPS Review.

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