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Will global chip prices rise again? Industry insiders: Cars, computers may be more expensive

By Industry News
2022-05-26
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Chip giants such as TSMC, Samsung and Intel are mulling chip price increases, which may be transmitted to downstream electronic products for further price increases. A report on the US CNBC website on the 24th quoted Bain Semiconductor analyst Peter Hanbury as saying that in the past year, global chip prices have increased by 10% to 20%, and chip prices may continue to increase this year, or 5% to 5%. between 7%.

CNBC reported that part of the reason chip foundries are raising prices is because the current chip market is in a "seller's market" and manufacturers have a strong say in prices. At the same time, production costs are becoming more and more expensive. "The cost of chemicals used in chip manufacturing is up 10 to 20 percent," Hanbury said. "Similarly, there is a shortage of labor needed to build new semiconductor facilities, and employee wages are rising."

The Nikkei Asian Review recently reported, citing people familiar with the matter, that TSMC told customers for the second time in less than a year that it planned to raise prices. The company cited concerns about inflation, rising costs and its own expansion plans as the main reasons for the price increase. TSMC's price hike comes as the chip-making equipment industry grapples with a severe shortage of parts and materials, the report said. This will extend the delivery time to 18 months. According to Bloomberg, it is reported that Samsung plans to increase the price of chips by 20%.