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Thursday, March 28, 2024

Samsung plans 20% price increase for processors

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The South Korean giant is in talks with trading partners to increase processor prices, Bloomberg reports.

According to Bloomberg, the new terms of contracts for business partners should come into force in the second half of this year. The increase in prices is motivated by an increase in the cost of production and materials, as well as logistics.

Prices are expected to rise by 15-20 percent depending on the process. Processors based on older processes are expected to cost more. According to Bloomberg, negotiations with some partners have already been completed.

Samsung is the second largest microprocessor manufacturer in the world. The first place is always held by TSMC from Taiwan.

Problems in the microprocessor market

The production capacities of both companies are currently used at 100 percent, but it is not possible to fully meet the needs of the market for microprocessors. This is due, in part, to the increased demand for electronics during the pandemic. Products such as PCs, laptops, tablets, smartphones, TVs and consoles have enjoyed great popularity during the pandemic.

Another reason is the increasing computerization of other products. Microprocessors are also used in automobiles, household appliances, audio and video devices, and specialized devices.

The situation in the processor market worsened due to the COVID-19 pandemic, when Asian factories had to significantly reduce production. Despite a return to full production, demand still cannot be met.

To meet growing demand, companies are investing billions of dollars in new manufacturing facilities. In addition to Samsung and TSMC, Intel and Sony, the largest photomatrix manufacturer in the world, also invested in the expansion.

Collected: Boleslav Brechko
Source: Bloomberg

Source: Wprost

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