Other chipmakers join Intel, and prices will go up too

A few days ago, it was revealed that Intel was planning to hike its prices beginning in the fourth quarter of this year, owing to an increase in costs, both in components and in salaries and other labor expenses.

Jul 25, 2022 - 09:18
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Other chipmakers join Intel, and prices will go up too

Add to it the challenges posed by the supply crises, as well as the problems generated by successive confinements in several Asian regions, particularly China.

It remained to be seen what the rest of the manufacturers would do in light of Intel's decision. And it appears like the uncertainties are dispelling. More manufacturers have followed suit.

According to Digitimes, Qualcomm and Marvell Technologies have begun informing their customers that they will be raising their pricing.

It is unknown how much they will raise for the time being, but according to some sources, the increases might reach up to 20% depending on the type of goods.

TSMC is another manufacturer that has begun to alert customers of impending price rises, albeit the amount has not yet been disclosed.

Meanwhile, other manufacturers, like AMD, have remained mum on the subject. However, given that AMD's chips are made by TSMC, there is little doubt that the company will boost its prices as well.

It appears that in all situations identified thus far, the increases will affect all chip ranges. Both the low and mid-high end.

Server processors would be among the hardest hit by this rise, with price hikes of up to 20%, with everything that this entails for integrators and equipment vendors.

Above all, for large-scale cloud providers, and, as a result, for customers of these services. These increases are likely to be passed on to companies that contract for infrastructure or cloud storage services.

Post by Bryan C.