Chip market, Samsung may increase manufacturing costs

While the semiconductor shortage doesn't seem to be going away anytime soon, Samsung is considering increasing manufacturing costs for the chips it makes in-house through the Foundry division.

Bloomberg said, explaining that this move could have a strong impact on the final products purchased by consumers, both under the Korean brand and its partners, customers of the hardware supplied by the Seoul giant.

The intention to increase economic demands, up to 20% of today's cost, would be the answer to the general surge in prices, including those for raw materials and logistics in the production chain.

The eventual increase would result in companies using Samsung's semiconductors in their products having to pay between 15% and 20% more for the same chips as before.

Samsung, as a major player in the semiconductor industry, produces processors for a wide range of industries, from smartphones to memory storage, but also professional medical equipment.

As Bloomberg points out, a source surcharge will inevitably lead to an increase in all products using Samsung technologies.

Last week, a DigiTimes report stated that Taiwan Semiconductor Manufacturing, better known as Tsmc, one of the largest chip manufacturing companies globally, will raise semiconductor prices between 5% and 9% in 2023. "With i Rising costs on everything from energy to equipment, materials and merchandise, this is an inevitable move for Samsung, "said Masahiro Wakasugi, an analyst at Bloomberg Intelligence.