Chipmakers hike prices as global semiconductor shortage continues
Chipmakers are upping prices at a time when demand is at an all-time high.
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What you need to know
In today’s latest semiconductor shortage news, not only is theEU gearing upto boost its chipmaking game, but a Taiwanese news outlet is reporting chipmakers are spiking prices to varying degrees. Some are said to be fronting conservative hikes while others are sending bills through the roof (viaTom’s Hardware).
According toThe Taipei Timesand the statistics it reported on from Lu Media, “more than 30 semiconductor companies have issued price adjustment letters, with product price increases ranging from 10% to 30%.” Moreover, certain IC products were cited as having price multiplications in the dozens, with those hikes threatening to bankrupt small and medium-tier enterprises dependent on said products.
“Since April, the foundry prices of companies including UMC, SMIC, Power Semiconductor Manufacturing Co., Ltd. have increased by about 10% to 30%,” the report reads. It notes thatTSMC, the pack leader in everything semiconductor-related, has not raised prices but has discontinued certain discount practices, which results in a net customer price increase similar to a traditional price hike.
It’s specified in the report that the companies being referenced are “mainland” (i.e., theChinese mainland), so keep its findings within context. Still, if prices are rising to the tune of 30% over there, it’s only a matter of time before the economic ramifications are felt worldwide through every nation and company that deals with theaffected chipmakers. Theshortage is expected to lastfor a while longer, so how bad price increases may get remains to be seen.
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Robert Carnevale is the News Editor for Windows Central. He’s a big fan of Kinect (it lives on in his heart), Sonic the Hedgehog, and the legendary intersection of those two titans, Sonic Free Riders. He is the author ofCold War 2395. Have a useful tip? Send it to robert.carnevale@futurenet.com.
