Bloomberg writes that Samsung Electronics is in talks to raise chip prices.
What does it mean?
According to sources, the cost of semiconductors can increase by 15-20% depending on the level of complexity. Yes, chips made on outdated components will face a bigger jump in prices.
"Samsung's decision is a departure from last year's relatively stable pricing policy, when the industry rushed to raise prices due to a global shortage of chips. The company faces numerous macroeconomic risks, such as the war in Ukraine, quarantine measures in China, rising interest rates and inflation. This challenges business plans that are usually made for several years to come, ”Bloomberg writes.
This is likely to lead to higher prices for smartphones, cars and game consoles. After all, Samsung and Taiwan Semiconductor Manufacturing Co. accounts for more than two-thirds of the world's outsourced chip production capacity.
Sources point out that Samsung has completed negotiations with some customers, but is still negotiating with others. The new prices will be applied from the second half of this year.