According to Bloomberg, Samsung Electronics (005930. KS) is in discussions with customers about raising semiconductor contract manufacturing costs by up to 20% this year.
Bloomberg said that the change, which is anticipated to take effect in the second half of this year, is part of an industry-wide campaign to hike pricing to meet growing materials and logistical expenses.
According to Bloomberg, contract-based chip costs are expected to climb by 15% to 20%, depending on the complexity, with chips made on older nodes likely to see higher increases. Samsung has finished agreements with specific customers while continuing in talks with others.
Samsung Electronics declined to comment.
After Taiwan Semiconductor Manufacturing Co (TSMC), the firm is the second-largest chip contract producer (2330. TW).
TSMC forecasts a 37 percent increase in current-quarter revenue, citing a worldwide chip shortage that has kept order books full and enabled chipmakers to charge premium rates.
In a late April earnings call, Samsung said that demand for their chip contract manufacturing was greater than available capacity and that the supply bottleneck would remain.
