Samsung’s semiconductor division is in talks with its customers to increase the cost of chip production by 20%, according to Bloomberg.
The new tariffs will come into effect from the second half of 2022, with a 15-20% price increase depending on the complexity of chip production.
It’s worth noting that Samsung is the latest company in the industry to raise prices to keep up with rising material costs in the midst of the global semiconductor crisis. TSMC and MediaTek announced a 20% increase in prices for chipset production last year.
Bloomberg notes that companies that need chips made using legacy processes will face the biggest price increases. Manufacturing costs have risen by 30% on average, meaning foundries must charge higher fees to make a profit.
Most likely, the increase in the cost of manufacturing chipsets will eventually lead to a rise in the price of gadgets, cars and other devices using chips.
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