The semiconductor manufacturing division of South Korean Samsung Group, Samsung Foundry, is among the world’s most important semiconductor companies. The Elec’s new report, on the other hand, suggests that Samsung will increase chip prices.

Samsung is one of the two major chip manufacturers worldwide that manufactures in advanced processes such as 7nm and 5nm. The other semiconductor giant is the Taiwan Semiconductor Manufacturing Company (TSMC), you might guess. TSMC announced that it will increase its chip prices from the fourth quarter of this year. It looks like a similar move will come from the Korean giant.

According to The Elec, Samsung and another Korean foundry, Key Foundry, have informed their customers of the upcoming chip price hike. This increase is expected to range between 15% and 20%, and the rate will depend on the chip manufacturing technologies demanded by customers, their order volumes and the duration of their contracts with chip manufacturers.

In addition, various sources say that the price increase will begin to take effect in four to five months, and the increase will occur in December at the earliest. Chip manufacturers stated that they will make significant capital expenditures in the sector in the coming years.

TSMC has announced that it plans to invest $100 billion in its facilities over the next three years. Samsung Group has announced a $205 billion investment package for the semiconductor, telecommunications and bioinformatics sectors for the next three years. US chip maker Intel Corporation is preparing to enter the contract chip manufacturing arena. Intel also has plans to invest billions of dollars in new chip manufacturing facilities in Ocotillo, Arizona.

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Michael Lewis


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