Taiwan energy price hike set to hit chip makers

Business news |
By Peter Clarke

Taiwan is increasing electricity prices by an average of 8.4 percent for industrial customers such as chipmakers, a hike that is likely to be passed on to electronics customers.

The price rise has been skewed against industrial customers to spare domestic and small business users.

The Taiwan Power Company has been hit by rising costs of fuel as it has to import coal and gas to generate electricity. At the same time there is record demand due to the use of air conditioning because of high temperatures.

As Taiwan is a hub of global chip manufacturing the increase could have a major effect on chip prices and, in turn, contribute to a predicted end to a cycle of market growth.

Related links and articles:

Chip market went flat in 1Q22

Weakening chip market forces another forecast downgrade

2022 chip market growth will be 11 percent despite headwinds, says IC Insights

Semiconductor market heads for severe downturn says analyst

Chip market to rise 10.8 percent in 2022, says IC Insights


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