- Samsung is the world’s second-largest chipmaker behind Taiwan’s TSMC.
- Chips are used in virtually all electronic devices, from cell phones to cars to computers.
- Due to the crisis, the Korean company is negotiating increases of up to 20% in the chips it sells to third parties and this is going to impact the sale value of almost all technological devices.
The pandemic, the container crisis, the chip shortage and the armed conflict in Eastern Europe will not be free for the world. Nothing of that.
Conversely, the entire planet is already paying for all these problems with inflation and the consequences are not over yet.
The latest news about it comes from South Korea and from the hand of Bloombergwhich assures this Friday, May 13, that the technological giant of that country, Samsung, is about to increase the sale price of its chips.
This decision will impact the sale value of all devices related to these supplies.
According to Bloomberg, Samsung is in talks with its customers to raise the price it charges them for chip contract manufacturing. up to 20 percent this 2022.
The measure, which is calculated to be applied in the second half of this year, is part of an iinflationary impulse in the whole industry that is forced to increase prices to cover the increasing cost of materials and logistics processes.
Samsung raises chip prices
The calculation made by the sources consulted by the American media is that the price of chips for contracts will rise between 15 percent and 20 percent.
The difference varies according to the level of sophistication of the semiconductors.
According to the sources, some chips are likely to have even higher magnifications.
The report says Samsung has already finished negotiations with some of its customers and is still in talks with others.
Samsung is not a minor player in this business. Indeed, the Korean company is the second largest contract chipmaker on the planet in a market led by the Taiwanese giant TSMC (Taiwan Semiconductor Manufacturing Co).
TSMC made a positive forecast on its sales of 35 percent for the current quarter, although it warned that it expects its chip production capacity to remain severely limited in 2022 as the global semiconductor crisis has outpaced supply.
In this context of increased demand and low supply, it is not surprising that prices rise.
Even more so when the prices of raw materials and oil have skyrocketed, making transportation more expensive.
Samsung said in April that demand from major customers for contract chips was greater than its production capacity.
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