Business

Tech giant Samsung likely to raise contract chipmaking prices by upto 20% – Business Standard




South Korean tech giant is reportedly planning to raise chipmaking prices by up to 20 per cent.


is in talks with foundry clients to hike the contract chipmaking prices, Yonhap reported citing media reports.





spokespersons, contacted by Yonhap, said they could not officially comment on the matter.


Samsung is the world’s largest memory chip maker and the second largest contract chip manufacturer after Taiwan’s TSMC.


Samsung’s foundry business achieved its highest quarterly sales in the January-March period, as demand was solid from all applications and yields of the advanced process improved.


Kang Moon-soo, senior vice president and head of Samsung’s foundry market and strategy team, had said during the company’s earnings call late last month that the foundry business will continue to improve in the coming years.


“If you look at our order book for the next five-year period, the (total) orders are around eight times our previous year’s revenue,” he said.


Possible price increases are in line with the industry-wide trend to charge more for chip manufacturing amid high inflation and rising raw material costs.


TSMC is widely reported to raise prices by 5-9 per cent in 2023.


–IANS


vc/svn/

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor





READ SOURCE

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.