Samsung is reportedly preparing to raise chip prices, a move that could significantly impact the price of smartphones and other electronics.
Samsung is one of the leading semiconductor manufacturers, with its chips widely used in the smartphone and electronics industry. In addition to its own line of Exynos chips, the company provides foundry services for customers throughout the industry. According to Bloomberg, Samsung is now talking with its foundry clients about the possibility of raising prices as much as 20%.
The move follows a similar one by TSMC that was reported last year. TSMC implemented one of its biggest price hikes in a decade, in an effort to stave off rising costs and continue its investments in next-gen technology.
Samsung following suit is no real surprise, as the semiconductor industry has been rocked by the pandemic, supply chain issues, and the war in Ukraine.
“This is an inevitable move for Samsung,” said said Masahiro Wakasugi, Bloomberg Intelligence analyst. “Some customers may accept higher prices if they can get chips earlier than others,” he said.
