Report: Samsung Foundry next with 20 percent price hike

Report: Samsung Foundry next with 20 percent price hike
Business news |
Samsung Foundry is preparing to raise chip processing prices by 20 percent later this year, part of an industry-wide push that includes TSMC, according to reports. The price rises are certainly in part to cover rising costs of chip making in terms of materials and equipment but it is also…
By Peter Clarke

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Samsung Foundry is preparing to raise chip processing prices by 20 percent later this year, part of an industry-wide push that includes TSMC, according to reports.

The price rises are certainly in part to cover rising costs of chip making in terms of materials and equipment but it is also the case that there may be a last opportunity in this economic cycle to get customers paying because demand exceeds supply. While an undersupply situation has lasted for several quarters impacting multiple sectors in the consumer sector a recession is being predicted that could see demand collapse (see Semiconductor market heads for severe downturn says analyst).

Samsung’s price rises could be as low as 15 percent at the leading-edge but closer to 20 percent for more mature nodes, Bloomberg said referencing unnamed sources. The price rises are being applied from 2H22.

The semiconductor industry is facing multiple threat factors including: the war in Ukraine, Covid lockdowns in China, rising interest rates, inflation and a possible global recession.

TSMC and UMC are also said to be advising of single-digit percentage price rises after price hikes at the end of 2021 (see TSMC to drive global inflation with 20% price rise). Foundry market leader TSMC plans to raise prices by between 5 and 8 percent from 2023, while UMC is planning a 4 percent rise in 2Q22, the report said.

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