Samsung prepares to raise chip production prices by up to 20%

Posted:
in General Discussion
Samsung will seemingly join the rest of the chip production industry in increasing the price to make semiconductors, as chip foundries raise the cost of manufacturing important components used in modern electronic devices.




The global semiconductor crisis has prompted many chip-making firms to raise their prices throughout 2021 and 2022. On Friday, a report indicated that Samsung will finally follow the pack and issue its own price hikes.

Samsung is allegedly talking to clients to increase semiconductor pricing, with the raises potentially reaching up to 20% more than usual, sources familiar with the matter told Bloomberg. Depending on the difficulty of production, such as sophisticated designs, as well as other factors, the cost increase to clients can be between 15% and 20%.

While tougher designs will cost more, it also seems that those who request production using legacy nodes will also see larger price increases than those using newer nodes for their designs.

The new pricing will potentially apply starting from the second half of 2022, sources say. Negotiations are ongoing, with Samsung apparently still talking to some clients, but concluded talks with others.

Samsung has been relatively stable with its pricing throughout 2021, while other firms pushed ahead to increase prices. However, multiple risks including the Ukraine war and lockdowns in China is making it harder for Samsung to weather the storm.

As one of the biggest semiconductor producers, the price changes could potentially impact the end cost of products sold to consumers. Apple chip partner TSMC, which rivals Samsung at the top of the industry, started raising its prices in August 2021, a move that stands a chance to affect "iPhone 14" pricing.

Read on AppleInsider

Comments

  • Reply 1 of 14
    9secondkox29secondkox2 Posts: 1,584member
    Ridiculous. 

    The sooner companies leave China in the dust, the better. 
    edited May 2022 williamlondonwatto_cobra
  • Reply 2 of 14
    waveparticlewaveparticle Posts: 1,136member
    Ridiculous. 

    The sooner companies leave China in the dust, the better. 
    LOL Samsung is a South Korean company. Where do you live? Mars? 
    williamlondondanoxJinTech9secondkox2charlesatlas
  • Reply 3 of 14
    9secondkox29secondkox2 Posts: 1,584member
    Ridiculous. 

    The sooner companies leave China in the dust, the better. 
    LOL Samsung is a South Korean company. Where do you live? Mars? 
    Read the article. Everyone knows where Samsung is from. They don’t make all the parts. 

    It’s ok to be less abrasive when wondering where someone else is coming from. 
    edited May 2022 williamlondonwatto_cobra
  • Reply 4 of 14
    The pandemic has ushered in an orgy of price gouging from corporations. Profit margins in general are well above what you would expect if they were simply passing along increased costs to consumers.
    watto_cobra
  • Reply 5 of 14
    leavingthebiggleavingthebigg Posts: 1,291member
    This is the perfect opportunity for Apple-focused Web sites to append articles with the many times Samsung and other companies have been convicted of price gauging. Publishing less flattering facts vs fear mongering that iPhone prices might increase would be refreshing since Apple hadn’t increased iPhone pricing to offset Samsung’s convicted price gauging in the past. 
    watto_cobra
  • Reply 6 of 14
    waveparticlewaveparticle Posts: 1,136member
    The pandemic has ushered in an orgy of price gouging from corporations. Profit margins in general are well above what you would expect if they were simply passing along increased costs to consumers.
    This is happening because US government since Trump has suppressed competition from China. The notable example is the killing of Huawei.
    williamlondon9secondkox2
  • Reply 7 of 14
    XedXed Posts: 1,595member
    The pandemic has ushered in an orgy of price gouging from corporations. Profit margins in general are well above what you would expect if they were simply passing along increased costs to consumers.
    This is happening because US government since Trump has suppressed competition from China. The notable example is the killing of Huawei.
    Since Trump? Trump was POTUS back in 2012? That’s news to me.

    Trump signed an executive order in 2019, but he didn’t need to since there was already a bipartisan bill in the senate for this ongoing concern that was going to pass. He simply did what was going to happen because it played well to his jingoistic agenda. As noted  by your post, you give him credit and erase 7 years, and the entire senate, and everyone else involved. You are clearly some of the people that can be fooled all of the time.

    williamlondondewmetmaywatto_cobra
  • Reply 8 of 14
    waveparticlewaveparticle Posts: 1,136member
    Xed said:
    The pandemic has ushered in an orgy of price gouging from corporations. Profit margins in general are well above what you would expect if they were simply passing along increased costs to consumers.
    This is happening because US government since Trump has suppressed competition from China. The notable example is the killing of Huawei.
    Since Trump? Trump was POTUS back in 2012? That’s news to me.

    Trump signed an executive order in 2019, but he didn’t need to since there was already a bipartisan bill in the senate for this ongoing concern that was going to pass. He simply did what was going to happen because it played well to his jingoistic agenda. As noted  by your post, you give him credit and erase 7 years, and the entire senate, and everyone else involved. You are clearly some of the people that can be fooled all of the time.

    Your timeline should move back to 2018 when Trump launched the trade war against China. He charged $500B/year tariffs on Chinese goods. He claimed all the cost are absorbed by Chinese manufacturers. Biden said he is proud that US government deficit did not increase in his first year. He forgot the extra $500B is added to the federal income. Over the last several years the economic system has figured out how to add this $500B/year back to the prices. 
    williamlondon9secondkox2
  • Reply 9 of 14
    sflocalsflocal Posts: 6,020member
    Ridiculous. 

    The sooner companies leave China in the dust, the better. 
    LOL Samsung is a South Korean company. Where do you live? Mars? 
    Ignorance is strong with you.
    9secondkox2watto_cobra
  • Reply 10 of 14
    danoxdanox Posts: 1,527member
    Ridiculous. 

    The sooner companies leave China in the dust, the better. 
    Apple has hired Pinkerton Lawyers to club 66,000 Americans out of pocket change (less 4 billion dollars) which is less than 1/4 of one quarter dividends. I’m worried about that, the lawyers Apple have on staff already know how to play Scrooge no need for more.
  • Reply 11 of 14
    JWSCJWSC Posts: 1,202member
    Ridiculous. 

    The sooner companies leave China in the dust, the better. 
    LOL Samsung is a South Korean company. Where do you live? Mars? 
    Read the article. Everyone knows where Samsung is from. They don’t make all the parts. 

    It’s ok to be less abrasive when wondering where someone else is coming from. 
    Meh.  The China reference seems to be a throwaway line.  Nothing backing it up.  The South Korean chaebol are vertically integrated.
  • Reply 12 of 14
    9secondkox29secondkox2 Posts: 1,584member
    JWSC said:
    Ridiculous. 

    The sooner companies leave China in the dust, the better. 
    LOL Samsung is a South Korean company. Where do you live? Mars? 
    Read the article. Everyone knows where Samsung is from. They don’t make all the parts. 

    It’s ok to be less abrasive when wondering where someone else is coming from. 
    Meh.  The China reference seems to be a throwaway line.  Nothing backing it up.  The South Korean chaebol are vertically integrated.
    It has to do with raw materials and certain semiconductors I believe. 
    edited May 2022 watto_cobra
  • Reply 13 of 14
    chadbagchadbag Posts: 1,821member
    The pandemic has ushered in an orgy of price gouging from corporations. Profit margins in general are well above what you would expect if they were simply passing along increased costs to consumers.
    This is happening because US government since Trump has suppressed competition from China. The notable example is the killing of Huawei.
    No.  No no no.   But good try. 


    watto_cobra
  • Reply 14 of 14
    chadbagchadbag Posts: 1,821member
    Regarding China.  Samsung does manufacture in China.  Not sure all of what is manufactured there but while Samsung is based in Korea (S), it manufactures in China just like Apple is US based but manufactures in China (except ISamsung owns some of its own factories in China and is not just hiring out assembly )

    Samsung also runs US based fabs.  Despite being a Korean company.   


    watto_cobra
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