Samsung said to increase chip manufacturing prices by up to 20 percent

Bloomberg reported Friday that Samsung Electronics is in talks with customers about a 20 percent increase in prices for chip contract manufacturing this year.

SpeedThe move, expected to come into effect from the second half of this year, is part of an industry-wide push to raise prices to cover rising material and logistics costs, Bloomberg said, citing people familiar with the matter.

Contract-based chip prices are expected to rise by about 15 percent to 20 percent depending on the level of sophistication, with chips produced on legacy nodes likely to face major increases, Bloomberg said, followed by Samsung. Have completed negotiations with some customers, while still in discussion. 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 forecasts up to 37 percent jump in current-quarter sales, saying chip capacity is expected to remain very tight this year, amid a global chip crisis that has kept order books full and chip makers is allowed to charge premium value.

Samsung said in an earnings call in late April that demand from key customers for its chip contract manufacturing was exceeding its available capacity, and it expected continued supply constraints.

© Thomson Reuters 2022

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