Tech

Samsung says it will increase chip production costs by up to 20%


Electronics giant Samsung is in talks with customers about increasing chip contract manufacturing prices by up to 20% this year, Bloomberg reported on Friday.

Movementexpected to go into effect from the second half of this year, as part of an industry-wide push to raise prices to offset rising logistics and material costs, Bloomberg quoted people familiar with the matter as saying. know.

Contract-based chip prices will likely increase by about 15% to 20%, depending on complexity, with chips manufactured on legacy nodes likely to face larger increases, Bloomberg reports. learn more that Samsung has completed negotiations with some customers while still in discussions with others.

SAMSUNG Electronics declined to comment.

The company is the world’s second largest chip contract manufacturer, after Taiwan Semiconductor Manufacturing Company (TSMC).

TSMC has forecast sales for the current quarter to soar as much as 37%, saying it expects chip capacity to remain very tight this year amid the global chip crisis that has kept its books on the books. full order and allows chipmakers to charge higher prices.

Samsung said in an earnings call in late April that demand from major customers for its chip contract manufacturing is greater than it currently has, and it expects continued supply shortfalls. .

© Thomson Reuters 2022




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