Taiwan Semiconductor, Intel, and Samsung reportedly considering price hikes at chip foundries

Prices are going to continue to rise, even though there's already been a reduced demand for products as a result.


Inflation continues to be a growing problem across a wide variety of industries, with the next item facing a price hike being semiconductors. Specifically, foundries like Taiwan Semiconductor Manufacturing Company, Samsung, and Intel, are all considering raising prices amid growing operation costs as reported by outlets like CNBC.

The cited reasons for the price increase are growing operation costs, including an increase in the cost of materials needed to manufacture semiconductors, and rising labor costs. This comes in addition to the ongoing semiconductor shortage as a result of the COVID pandemic, and new supply issues as a result of the war in Ukraine.

Companies like Taiwan Semiconductor (TSM) are considering semiconductor price hikes.

The increased chip prices will further strain consumers already struggling with inflation in other areas, with Forrester analyst Glenn O’Donnell telling CNBC that he expects “PCs, cars, toys, consumer electronics, appliances, and many other products to get more expensive.”

It’s pointed out that as a result of increased costs, there are a number of sectors that have seen reduced demand as a growing number of consumers find themselves unable to afford products following inflation-spurred price hikes.

As such, it’ll be interesting to see how companies will balance these intended price hikes with a potential loss of profit as a result of reduced consumer demand. For more on the planned semiconductor price hikes, be sure to read through the full report from CNBC.

Some sectors have already seen reduced consumer demand as a result of inflation-related price hikes.

We’re curious, what are your thoughts on ongoing inflation issues from company price hikes, to reduced consumer demand as a result? Let us know in Chatty, and for more on the subject, also be sure to check out our coverage of Taiwan Semiconductor (TSM) seeing a slowing demand for PCs and smartphones.

Senior Editor

Morgan is a writer from the frozen wastelands of Maine who enjoys metal music, kpop, horror, and indie games. They're also a Tetris fanatic who's fiercely competitive in games like Tetris 99... and all games in general. But mostly Tetris. You can follow Morgan on Twitter @Author_MShaver.

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