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Samsung Mentioned to Hike Chip Manufacturing Costs by As much as 20 %


Samsung Electronics is in talks with shoppers about mountain climbing costs for chip contract manufacturing by as much as 20 p.c this 12 months, Bloomberg reported on Friday.

The transfer, anticipated to be utilized from the second half of this 12 months, is a part of an industry-wide push to lift costs to cowl rising supplies and logistics prices, Bloomberg mentioned, citing folks aware of the matter.

Contract-based chip costs are prone to rise round 15 p.c to twenty p.c, relying upon the extent of sophistication, with chips produced on legacy nodes prone to face larger hikes, Bloomberg mentioned, including Samsung had accomplished negotiations with some shoppers whereas nonetheless in discussions with others.

Samsung Electronics declined to remark.

The corporate is the world’s second-largest chip contract producer, after Taiwan Semiconductor Manufacturing Co (TSMC).

TSMC has forecast an as much as 37 p.c bounce in current-quarter gross sales, saying it expects chip capability to stay very tight this 12 months amid a world chip crunch that has stored order books full and allowed chipmakers to cost premium costs.

Samsung mentioned in an earnings name in late April that main clients’ demand for its chip contract manufacturing was higher than its obtainable capability, and it anticipated the provision scarcity to proceed.

© Thomson Reuters 2022


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