As the global chip shortage continues, some chip makers have begun to increase prices.Chip makers may finally be making money through the global chip shortage process. Times-Taipei News shares last week that more than 30 semiconductor companies have issued price adjustment letters with product price increases ranging from 10 percent to 30 percent since the second quarter of 2021.
UMC, SMIC and Power Semiconductor Manufacturing Co. are said to be among the companies that adjusted their prices. The reasons given for these adjustments differ. It is among the information that the cost of chipboards, printed circuit boards, and packaging and testing has increased sharply in varying degrees.
Price adjustments vary by chip type. For example, signal chain integrated circuits are claimed to see price increases of 10 percent to 20 percent, while the price of power management integrated circuits increases by 10 percent to 30 percent. Some memory chips are said to have gone up to 20 percent in price.
Increases that are already steep can actually be docile compared to other adjustments. It is stated that the prices of some integrated circuit products are now rising by the dozens, causing difficulties in the production and operation of small and medium-sized enterprises.
On the other hand, TSMC has not announced any price increase. This shows that the world’s largest chip maker is doing well. The company’s decision to end the price cuts will of course have the same effect on the cost of the chips. The effects of these price increases will likely be felt across the industry, even without TSMC. This effect can also be increased for products based on multiple chip types.
DigiTimes also reported that DRAM and NAND prices are expected to rise in the third quarter due to strong demand in various segments, panic buying prompted by the rise of the Chia cryptocurrency, and the limited supply of NAND flash device controllers that led to higher prices for these chips. It is also among the information that with the PC DRAM chip prices increased by more than 25 percent, the pricing of the DRAM memory contract increased by more than 20 percent in the second quarter. DRAM contract prices are expected to increase 10 percent to 20 percent in the third quarter, while NAND contract prices are expected to rise by as much as 10 percent.