Intel has informed customers it will raise prices on a majority of its microprocessors and peripheral chip products later this year, citing rising costs. Prices will increase inautumn on flagship products where it dominates the market, and a wide range of other items, including chips for Wi-Fi and other connectivity.
Intel says it has seen surging costs for production and materials. The percentage increases have not been finalised, and could be different for different types of chips, but are likely to range from a minimal single-digit increase to more than 10 to 20 per cent in some cases.
This might seem a little odd as demand for smartphones, PCs, TVs and game consoles weakened earlier this year, and device makers have indicated that inventories of unsold items are mounting. Samsung Electronics has told suppliers of a range of its products to halt shipments.
Many of Intel's key PC clients, such as Acer and Asustek Computer, have publicly warned of a downturn. Acer Chairman Jason Chen on Wednesday told reporters that his company is no longer suffering a chip shortage. "Some of the chip suppliers' CEOs even called me recently to buy more chips from them," he said. "The situation has changed."
TSMC has told clients it will raise prices by a "single-digit" percentage starting in 2023, Nikkei Asia first reported, less than a year after its largest price increase in a decade.