Bloomberg: Samsung wants to raise prices for chip production by 20 percent

Samsung Foundry is in talks with customers to increase chip manufacturing prices by 15 to 20 percent, according to Bloomberg. The price increases would be the result of increased costs for materials and logistics.

The extent of the price increases varies depending on the complexity of the chips Samsung Foundry produces for its customers. People who are familiar with the company’s plans reported this to Bloomberg. Chips that Samsung produces on the basis of older nodes would increase in price more than the chips that are made on later production processes.

Bloomberg writes that Samsung was relatively cautious with price increases last year, despite the chip shortages. Now the company would have chosen to raise prices, due to increased material costs and logistics costs. The underlying causes include the war in Ukraine, lockdowns in China due to corona outbreaks and inflation.

Samsung Foundry would like to implement the price increases in the second half of this year. Competitors TSMC and UMC are also said to have warned customers that prices are going up. TSMC would like to increase prices by 5 to 8 percent from 2023 and already implemented a price increase of 20 percent last year.