International Business: Samsung may increase prices of chipmaking – Gulf Digital News

  • Date: 14-May-2022
  • Source: Gulf Digital News
  • Sector:Economy
  • Country:Gulf
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International Business: Samsung may increase prices of chipmaking – Gulf Digital News

SEOUL: Samsung Electronics is in talks with clients about hiking prices for chip contract manufacturing by up to 20 per cent this year, Bloomberg reported yesterday.

The move, expected to be applied from the second half of this year, is part of an industry-wide push to raise prices to cover rising materials and logistics costs, Bloomberg said.

Contract-based chip prices are likely to rise around 15pc to 20pc, depending upon the level of sophistication, with chips produced on legacy nodes likely to face bigger hikes, Bloomberg said, adding Samsung had completed negotiations with some clients while still in discussions with others.

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

TSMC has forecast an up to 37pc jump in current-quarter sales, saying it expects chip capacity to remain very tight this year amid a global chip crunch that has kept order books full and allowed chipmakers to charge premium prices.