Samsung is negotiating to increase contract chip manufacturing prices

Amid the ongoing semiconductor supply shortage, Samsung is reportedly in the process of increasing prices for chip contract manufacturing later this year.

Samsung could increase contract-based chip manufacturing prices by up to 20% in the second half of 2022. The company is reportedly in talks with its clients about the price hike. (Via Link News citing Bloomberg).

Of note is that Samsung is merely following market trends. There's an industry-wide effort to increase prices for contract-based chip manufacturing because of rising logistics and materials costs.

Samsung is adapting to industry changes, and according to reports, the company has finished negotiations for increasing chip manufacturing prices with some clients and is discussing the matter with others.

Chip demand continues to outweigh supply for both Samsung and TSMC. Samsung — the second-largest chip contract manufacturer in the world — confirmed last month that demand continues to outweigh its available manufacturing capacity.

Samsung is increasing its manufacturing capacity and is building a new $17 billion chip manufacturing plant in Texas.

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Mihai Matei - Senior Editor

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First Samsung device: SGH-A800

Mihai is a blogger and column writer at SamMobile. His first Samsung phone was an A800 which took a lot of beating, and a part of him still misses the novelty of the clamshell design. In his free time, he enjoys watching shows, documentaries, and stand-up comedy; listening to music, taking walks, and occasionally playing old(er) video games.

Business General Samsung Electronics