Samsung Reportedly in Talks for 20% Hike on Chipmaking Prices

Samsung is reportedly in talks with clients on plans to hike prices for chip manufacturing by up to 20% this year.

Contract-based chip prices are expected to rise around 15% to 20% in the second half of the year, Bloomberg reported, citing people familiar with the matter.

The level of price increase will depend on the chip’s level of sophistication, with those produced on legacy nodes likely to see bigger hikes, according to Bloomberg.

The hike will help the firm cover surging materials and logistics costs, Bloomberg said.

Samsung has reportedly completed negotiations with some clients while still talking with others.

The world’s second-largest chip manufacturer said in an April earnings call that demand for contract chip productions is beyond capacity. It warned that it expects the shortage to persist.

© Fourth Estate® — All Rights Reserved.
This material may not be published, broadcast, rewritten or redistributed.

You have two free articles remaining.
Log in or Subscribe now for unlimited online access.