Friday, May 13th 2022
Samsung Foundry Considering up to 20 Percent Price Hikes
Earlier this week, news about TSMC increasing prices in 2023 made its way online and now Samsung Foundry is said to be discussing price hikes with its customers to make up for the increased costs in materials. TSMC already increased its prices by around 20 percent at the end of 2021 and now it looks like Samsung Foundry is set to follow suit with a similar price hike. Depending on the node, the company is said to be looking at increases of between 15 to 20 percent. The somewhat peculiar thing in the case of Samsung Foundry, is that the company is looking at asking for more money on older, legacy nodes, than it will for its cutting edge nodes.
The price increases are said to come into effect sometime in the second half of 2022, so more than six months after TSMC's price hike. The company is still in negotiation with some of its customers, while others have already come to an agreement with Samsung Foundries. The costs to produce chips are said to be increasing by 20 to 30 percent across the board, no matter if we're talking materials needed to produce integrated circuits, or building new factories, according to Bloomberg. Samsung Foundries have also managed to secure long-term orders for the next five years, with a combined value of around eight times that of previous year's revenue, according to its EVP, Kang Moon-soo. The company is hoping to overtake TSMC in the future and invested more than US$36 billion in 2021 alone to expand its foundry business with new fabs and EUV machines. The good news is that Samsung Foundry claims to be back on track when it comes to yield on its 4 nm node and mass production of its 3 nm node is said to start this quarter.
Source:
Bloomberg
The price increases are said to come into effect sometime in the second half of 2022, so more than six months after TSMC's price hike. The company is still in negotiation with some of its customers, while others have already come to an agreement with Samsung Foundries. The costs to produce chips are said to be increasing by 20 to 30 percent across the board, no matter if we're talking materials needed to produce integrated circuits, or building new factories, according to Bloomberg. Samsung Foundries have also managed to secure long-term orders for the next five years, with a combined value of around eight times that of previous year's revenue, according to its EVP, Kang Moon-soo. The company is hoping to overtake TSMC in the future and invested more than US$36 billion in 2021 alone to expand its foundry business with new fabs and EUV machines. The good news is that Samsung Foundry claims to be back on track when it comes to yield on its 4 nm node and mass production of its 3 nm node is said to start this quarter.
30 Comments on Samsung Foundry Considering up to 20 Percent Price Hikes
They might be making record profits, but they're also re-investing record amounts to keep bringing out new nodes on a regular basis, so the entire premise for how we improve the performance of ICs can continue.
More players wouldn't solve this.
I didn't end up writing it up, but there were figures of what the two head honchos at TSMC were making in terms of salary and it's just north of US$14 million a year.
That might sound like a whole ton of cash to most of us, but Pat over at Intel earned US$176.8 million last year...
I guess TSMC is putting their money back into the business, rather than blowing it on its executives.
www.reuters.com/business/intel-ceo-earned-1711-times-average-workers-pay-2021-2022-03-30/
The sooner we destroy ourselves the better
Professional athletes too, pure insanity...
Samsungs Appliances are garbage as well.
In all honesty, if GF wafers are cheaper I would take it from them and pay the extra electricity for 14/12nm.
Maybe it's more for lost revenue than it is profit?
Inflation is what it is as long as we're continuing on the path of capitalism.
Keep in mind that we're talking a subsidiary here and not Samsung Electronics.