Yesterday’s a report indicated that TSMC was in talks with clients about a 5% – 9% increase in 2023, today a Bloomberg story signals that Samsung Foundry is also looking to increase its prices. Samsung Foundry is negotiating a rather massive 15% – 20% price hike with its customers, the report says. The increase is projected to take place in the second half of 2022 and will vary depending on the manufacturing technology. Chips made on legacy processes will get a higher price hike, whereas devices made using advanced and leading-edge nodes will see a lower hike. Some of Samsung Foundry’s customers have reportedly agreed to new terms. Samsung declined to comment on the matter when asked by Bloomberg. Unlike GlobalFoundries, TSMC, SMIC, and UMC, Samsung Foundry maintained a relatively stable pricing policy in 2021, despite booming demand. But with fab utilization rates of around 100% or higher, foundries face additional risks and their equipment depreciates quicker. In addition, there are macroeconomic risks like inflation, rising interest rates, climbing labor costs, and the war in Ukraine. As a result, everyone has to increase their quotes. That means that foundries get higher revenue and increase their profits . “With costs rising on everything… Read full this story
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