Samsung Electronics is in talks with shoppers about mountain climbing costs for chip contract manufacturing by as much as 20% this yr, Bloomberg reported on Friday.
The transfer, anticipated to be utilized from the second half of this yr, is a part of an industry-wide push to lift costs to cowl rising supplies and logistics prices, Bloomberg stated, citing individuals aware of the matter.
Contract-based chip costs are prone to rise round 15% to twenty%, relying upon the extent of sophistication, with chips produced on legacy nodes prone to face larger hikes, Bloomberg stated, including Samsung had accomplished negotiations with some shoppers whereas nonetheless in discussions with others.
Samsung Electronics declined to remark.
TSMC has forecast an as much as 37% soar in current-quarter gross sales, saying it expects chip capability to stay very tight this yr amid a worldwide chip crunch that has saved order books full and allowed chipmakers to cost premium costs.
Samsung stated in an earnings name in late April that main clients’ demand for its chip contract manufacturing was higher than its obtainable capability, and it anticipated the availability scarcity to proceed.