According to executives of several industry companies, the products that the US chip giant is preparing to raise prices this fall include home computer and server CPUs, as well as peripheral products such as Wi-Fi chips. Intel’s reason for the price hike to downstream manufacturers is the surge in production and raw material costs. (Electronic Components Purchasing Network)
According to people familiar with the matter, the exact price increase has not been finalized, but it may be from a few percentage points to about 10%-20%, depending on the product.
Entanglement: Low inflation leads to rising spending power.
The news of Intel’s rise is not surprising after U.S. annual inflation hit a respectable 9.1% in June. However, at the same time as commodity, shipping and labor costs have risen, low inflation has also inflated the wallets of end consumers, making pricing particularly difficult. (Electronic Component)
Demand for smartphones, TVs, computers and game consoles has been known to increase since the beginning of the year, with device makers warning that unsold products are piling up in warehouses. Previously, Samsung Electronics had notified a series of suppliers to stop deliveries.
As a member of the industry, Intel faces the same environment. Acer and Asus (ASUS), the company’s key OEM partners, have disclosed that the industry has turned into a downturn. Acer CEO Chen Junsheng, 40; Chen made it clear last Wednesday that his company was no longer short of chips, and even the CEOs of some chip suppliers called him to advise him to sell more chips.
Intel will increase the price of various chips, and some products may increase by 10%-20%.
Intel also clearly warned of slowing demand on top of its financial reporting meeting in April, but CEO Pat Gelsinger and CFO Dave Zimmer also submitted proposals. price idea. In response to media queries, Intel officials also responded on Thursday that they raised prices on certain products ahead of the company’s first-quarter earnings call in response to inflationary pressures. Now the company has begun to notify upstream consumers of these changes. (ic integrated circuit)
Looking at the semiconductor industry as a whole, the news about price increases in the past few months has not stopped: contract manufacturing giant TSMC told customers that there will still be “single-digit” price increases in 2023; key material suppliers Xinyue Chemical and Sumco will also raise prices by 20%; wafer maker Ring Sphere Wafers also confirmed that it will raise prices for chip factory customers.
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