Samsung reportedly increasing component prices by up to 20%

Samsung reportedly increasing component prices by up to 20%
The logo of Samsung Electronics is seen at its office building in Seoul, South Korea, on March 23, 2018.
PHOTO: Reuters

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

Sources familiar with the matter told Bloomberg that Samsung is discussing with its customers about raising chipmaking prices as much as 20 per cent 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 five to eight per cent and four per cent 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.

ALSO READ: Samsung Galaxy S22 series pricing and availability details in Singapore

This article was first published in Hardware Zone.

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