Jul 15, 2022 12:30:00

Intel plans to raise chip prices by up to 20%, will inflation raise costs and raise prices for a wide range of CPUs and peripherals in the fall?

Intel has informed its customers that it will raise prices for a wide range of semiconductor products such as CPUs and peripherals in the fall of 2022. It is reported that the price increase is due to the increase in production and manufacturing costs, and the rate of price increase varies depending on the type of chip, but it can be up to 10 to 20%.

Intel prepares chip price increase, blames inflation • The Register

https://www.theregister.com/2022/07/14/intel_plans_price_hikes_for/

Report: Intel planning to increase chip prices by up to 20% --Silicon ANGLE
https://siliconangle.com/2022/07/14/report-intel-planning-increase-chip-prices-20/

On July 14, 2022, it was reported that Intel had informed customers that it would raise the price of most semiconductor products such as CPUs for servers and PCs and Wi-Fi connected devices in the fall of 2022. .. According to one informant, the rate of price increases is uncertain and may vary depending on the type of chip, but it is likely to be in the range of a few percent, and in some cases 10-20%, for less. The Register, an overseas media source, said that Intel's price increase will start in October 2022, according to industry sources.

Intel said in its first-quarter earnings call in April that CEO Patrick Gelsinger 'remixes products to higher prices,' and CFO Dave Zimmer also 'targeted price increases in certain segments.' We are looking for a future price increase. ' In a statement to the media, Intel said at its first-quarter earnings briefing that inflationary pressures would raise prices in certain business areas. Intel has begun informing customers of these changes. I will. '

Inflation has been increasing in the United States and around the world in recent years, and the consumer price index in June 2022rose 9.1% year- on-year, the highest level since 1981. With inflation, Intel is facing rising electricity prices, raw materials, transportation costs, labor costs, etc., and the outlook for personal consumption is bleak. The plunge in cryptocurrencies is also affecting the decline in GPU demand.

Major suppliers of chip materials such as Shin- Etsu Chemical , SAMCO and Showa Denko have already informed their customers that they will raise prices by at least 20%. Semiconductor manufacturers are strongly influenced by these suppliers, and TSMC in Taiwan, the world's largest semiconductor foundry, plans to raise product prices from 2023.

In the semiconductor industry,

supply shortages have long been a problem due to the effects of the pandemic of the new coronavirus infection (COVID-19). However, in 2022, the demand for smartphones, PCs, TVs, and game consoles is weakening, and the inventory of device makers is increasing. According to Nikkei Asia, Samsung has informed various suppliers to stop shipping.

On July 13, Taiwanese PC and related equipment maker Acer CEO Jason Chen told reporters that Acer is no longer suffering from a chip shortage. 'Some chip supplier CEOs have recently called to buy more chips. Things have changed,' Chen said.

Holger Muller, CEO of technology market research firm Constellation Research , told Silicon ANGLE, a semiconductor media company, that price increases like this are rare because the chip industry tends to lower prices with the latest innovations as technology matures. indicate. He said it would be interesting to see if rival companies such as AMD and NVIDIA would follow suit and raise prices, or if they would maintain prices and aim to increase market share.