Samsung wants to raise chip prices by 15-20%, including due to the war in Ukraine

Bloomberg writes that Samsung Electronics is in talks to increase chip prices.

What does it mean?

According to sources, the cost of semiconductors could rise by 15-20%, depending on the level of complexity. Thus, chips produced on legacy nodes will face a larger price hike.

“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 chip shortage. 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 several years in advance, ”writes Bloomberg.

This will likely lead to higher prices for smartphones, cars and game consoles. Indeed, the share of Samsung and Taiwan Semiconductor Manufacturing Co. accounts for more than two-thirds of the world's outsourced chip manufacturing capacity.

Samsung has completed negotiations with some customers, but is still in talks with others, sources say. The new prices will apply from the second half of this year.

Source: Bloomberg