Samsung’s chip manufacturing costs rise: May affect prices

Announcing that chip production prices will increase in the past weeks, TSMC, which supplies chips to companies such as Qualcomm and Nvidia, is also participating in TSMC. According to reports by Bloomberg, the company, which has started negotiations with its customers about the change to be made, plans to increase production prices by 15 to 20 percent, depending on the level of development of the chips.

It can be reflected in product prices

Many sources state that costs increase by 20 to 30 percent in many materials, from chemicals required in chip production to gases and even machinery. In addition to all these, Samsung has also faced closures, inflation and logistics problems in China.

Manufacturers’ emphasis on high-quality chips Bloomberg Intelligence analyst Masahiro Wakasugi, who said that they plan to increase their profitability rates, expressed that the price increase is an “inevitable move for Samsung”. Also, Wakasugi thinks that some customers can accept higher prices for production priority. While the new decision is expected to be implemented from the second half of this year, price increases may occur in many products such as smartphones, cars and game consoles.