HomeEconomySamsung Plans to Raise Electronic Chip Prices by 20%...

Samsung Plans to Raise Electronic Chip Prices by 20% as Costs Rise

Samsung Electronics Co. is negotiating with foundry customers to charge additional fees of up to 20% for semiconductor production through 2022, joining an industry-wide campaign to raise prices to cover rising material and logistics costs.

Prices for contract-based chips are likely to rise by 15-20%, depending on the level of complexity, according to people familiar with the matter, who asked not to be named due to the sensitivity of the issue.

And people pointed out: “Chips that are produced under old contracts will face a large price increase, and the new prices will apply from the second half of this year, and Samsung has completed negotiations with some customers, while discussions are still underway. with others.”

Samsung’s decision marks a departure from last year’s relatively stable pricing policy, when companies in the space rushed to raise prices due to global chip shortages.

The company faces numerous macroeconomic risks, such as the war in Ukraine, quarantine measures in China, rising interest rates and inflation. These factors confuse the corporate plans he usually made years ago. A Samsung spokesperson declined to comment.

The move puts additional pressure on smartphone, car and game console makers to increase the prices consumers pay.

Shared by Samsung and Taiwan Semiconductor Manufacturing Co. accounts for more than two-thirds of the world’s chip manufacturing capacity through outsourcing.

Source: El Iktisad

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