Samsung Wants To Increase Chip Prices By Up To 20 Percent

Photo via Antara

JAKARTA - Samsung Electronics is in talks with clients to increase the price of contract-based chip manufacturing by 20 percent this year.

According to sources familiar with the matter, the measure may be implemented from the second half of this year, to cover rising material and logistics costs.

According to a Bloomberg report quoted by Reuters, the price of contract-based chips is likely to rise by around 15 to 20 percent, depending on the level of sophistication. Chips produced on legacy nodes are likely to see a bigger increase.

Until now, Samsung has refused to comment, Saturday, May 14, quoted from Antara.

Samsung is the world's second largest contract-based chipmaker after Taiwan Semiconductor Manufacturing Co (TSMC).

TSMC has forecast a surge of up to 37 percent in sales for the current quarter and expects chip capacity to remain very narrow amid the global chip crisis, leading to full orders and allowing chipmakers to charge higher prices.

In April, Samsung also said that demand was greater than available capacity and supply shortages were expected to continue.