In today’s latest semiconductor shortage news, not only is the EU gearing up to boost its chipmaking game, but a Taiwanese news outlet is reporting chipmakers are spiking prices to varying degrees. Some are said to be fronting conservative hikes while others are sending bills through the roof (via Tom’s Hardware).
According to The Taipei Times and the statistics it reported on from Lu Media, “more than 30 semiconductor companies have issued price adjustment letters, with product price increases ranging from 10% to 30%.” Moreover, certain IC products were cited as having price multiplications in the dozens, with those hikes threatening to bankrupt small and medium-tier enterprises dependent on said products.
“Since April, the foundry prices of companies including UMC, SMIC, Power Semiconductor Manufacturing Co., Ltd. have increased by about 10% to 30%,” the report reads. It notes that TSMC, the pack leader in everything semiconductor-related, has not raised prices but has discontinued certain discount practices, which results in a net customer price increase similar to a traditional price hike.
It’s specified in the report that the companies being referenced are “mainland” (i.e., the Chinese mainland), so keep its findings within context. Still, if prices are rising to the tune of 30% over there, it’s only a matter of time before the economic ramifications are felt worldwide through every nation and company that deals with the affected chipmakers. The shortage is expected to last for a while longer, so how bad price increases may get remains to be seen.