Samsung in talks to hike chipmaking costs by way of as much as 20% – Bloomberg

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The brand of Samsung Electronics is observed at its administrative center construction in Seoul, South Korea, March 23, 2018. REUTERS/Kim Hong-Ji

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SEOUL, Might 13 (Reuters) – Samsung Electronics (005930.KS) is in talks with purchasers about climbing costs for chip contract production by way of as much as 20% this yr, Bloomberg reported on Friday.

The transfer, anticipated to be carried out from the second one part of this yr, is a part of an industry-wide push to boost costs to hide emerging fabrics and logistics prices, Bloomberg mentioned, mentioning folks accustomed to the topic.

Contract-based chip costs are prone to upward push round 15% to twenty%, relying upon the extent of class, with chips produced on legacy nodes prone to face larger hikes, Bloomberg mentioned, including Samsung had finished negotiations with some purchasers whilst nonetheless in discussions with others.

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Samsung Electronics declined to remark.

The corporate is the arena’s second-largest chip contract producer, after Taiwan Semiconductor Production Co (TSMC) (2330.TW).

TSMC has forecast an as much as 37% bounce in current-quarter gross sales, pronouncing it expects chip capability to stay very tight this yr amid an international chip crunch that has saved order books complete and allowed chipmakers to rate top class costs. learn extra

Samsung mentioned in an income name in overdue April that main consumers’ call for for its chip contract production was once more than its to be had capability, and it anticipated the provision scarcity to proceed. learn extra

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Reporting by way of Joyce Lee and Sayantani Ghosh
Modifying by way of Mark Potter

Our Requirements: The Thomson Reuters Agree with Ideas.

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