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Wafer price rises hit foundry firms

by on24 May 2018


Massive demand for chips

The price of silicon wafers is set to rise by as much as 20 percent this year because of increasing demand from the automotive and other sectors.

 

That's according to Digitimes, which reports today that the five companies that make the wafers are in a position of short supply.

That will put pressure on foundry companies like TSMC and Globalfoundries, which will see their margins shaved because of the price hikes.

But the manufacturers of the wafers are likely to rake in money as the foundry firms jostle to be first in the queue.

It's not only the auto industry which is fuelling the shortage, the report said.

The internet of things, memory needs,  cryptocurrency and the rise of AI are all contributing to a surge in demand for ICs.

Last modified on 24 May 2018
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