The largest US chip maker plans to raise prices this fall for flagship products such as central processing units for servers and computers, where it dominates the market, as well as a wide variety of other items. including chips for wifi and other connectivity, according to three industry managers with first-hand knowledge. We are of course talking about Intel.
Intel says the price increases are necessary due to the rise in manufacturing and material costs, in addition, the percentage increases are not final yet and may differ for different chip types, but will likely range from a minimal increase of one digit per more than 10% and in some cases 20%.
Intel’s move comes amid a rise in inflation in the US and around the world. The United States reported that consumer prices rose 9.1% in June, a 40-year record. But while rising costs of raw materials, materials, shipping and labor have put pressure on the chip industry, inflation has also clouded the outlook for consumer spending, making pricing decisions particularly difficult.
Demand for smartphones, PCs, TVs and game consoles weakened earlier this year and device manufacturers indicated that inventories of unsold items are increasing. Samsung Electronics has told suppliers of a range of its products to stop shipping. Many of Intel’s major PC clients, such as Acer and Asustek Computer, have publicly warned of a downturn. Acer president Jason Chen told reporters on Wednesday that his company is no longer suffering from a shortage of chips.
Here are his words:
Some CEOs of chip vendors even called me recently to buy more chips from them.
Source: Lega Nerd
