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The first and second biggest semiconductor consignment manufacturers (foundry) are raising their service prices one after another. It is understood that supply of foundry could not catch up with the demands.

Bloomberg News announced on the 13th that Samsung Electronics are discussing with their customers about raising their semiconductor consignment prices up to 15~20%. Samsung Electronics did not mention specific raise amount. However, an official from Samsung Electronics delivered the atmosphere of the current market by saying, “There are a lot of demands related to foundry manufacturing, and due to the shortage of supply, there is an overall atmosphere to raise prices.”

TSMC Taiwan also announced maximum of 8% raise with their foundry prices. Nikkei Asia delivered the news that TSMC recently notified their customers about price raise. After the 20% raise from last year, it is expected they will push for another raise.

The industry believes that foundry prices raise is inevitable due to increased raw material and logistics costs in a situation where semiconductor supply could not keep up with demand. TSMC is also announced that they had to raise foundry prices due to inflation concerns, rising semiconductor production costs, and insufficient supply of parts.

If the prices of foundry service raise, it is expected to raise the prices of semiconductor chip products. The industry is concerned that price increase of the chips will put bad influence on information technology (IT) equipment, home appliances, and automobile market.

By Staff Reporter Dong-jun Kwon (