According to supply chain insiders, GlobalFoundries plans to raise prices for some of its manufacturing processes by 8% in 2023. The source said GF has just secured a new order from Qualcomm worth $4.2 billion, and by 2028, GF will receive a total order of $7.4 billion from Qualcomm.
In addition, the source also revealed that TSMC intends to maintain its planned price increase of 6-8% from next year. TSMC's offer in 2022 has already been raised by 10-20%. One of TSMC's U.S. customers has agreed to accept a 7% price hike for the foundry next year, with the rising costs passed on to downstream customers.
Samsung Electronics is considering a 20% increase in chip prices because the Samsung foundry has significantly raised its 5nm and 4nm manufacturing process yields.
This trend is for exreme expense increase is the trend, partially due to the raw material prices are continuing to rise. For instance, Shin-Etsu Chemical and Sumco, the top two in the wafer industry, raised the prices of their products by 20 percent each last year. This year, the former announced an additional increase of 10 percent or so and the Taiwanese wafer suppliers including FST and Wafer Works are following the suit.
“Manufacturers’ demand is high amid the chip supply shortage and the price of polysilicon for wafer manufacturing is continuing to rise,” said an industry source, adding, “At the same time, wafer suppliers are slow in expanding their facilities, and the current situation may continue for five years or so.”
