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.
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.
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.
Morgan Shaver posted a new article, Taiwan Semiconductor, Intel, and Samsung reportedly considering price hikes at chip foundries
with all the shortages and demands... checks out