- Analysts suggested that products relying on semiconductors will likely get more costly as chip foundries prepare to increase their prices, CNBC reports.
- Global semiconductor lead at Accenture Plc ACN saw the magnitude of any price increases depending upon the share of semiconductor cost in the overall product cost, the ability of manufacturers to cut costs in other areas, and the competitive landscape of each product category.
- Products using more advanced chips like GPUs (graphics processing units) and high-end CPUs (central processing units) are likely to go up in price, unlike smartphones which saw reduced demand, Alam said.
- The world's biggest foundries, including Taiwan Semiconductor Manufacturing Company Ltd TSM, Samsung Electronics Co, Ltd SSNLF, and Intel Corp INTC were considering further price hikes, analysts said.
- A Bain semiconductor analyst expected a further round of price increases in 2022 of 5%-7% lower than the 10%-20% in 2021. CNBC notes.
- The manufacturers could charge a premium as customers continue pushing to secure supply amid the persistent semiconductor chip crisis, the analyst reasoned. He saw the shortage to ease on specific chips by the end of the year.
- A Forrester analyst expected PCs, cars, toys, consumer electronics, appliances, and many other products to get more expensive as downstream customers pass the higher cost burden to their customers to retain profitability.
- Price Action: TSM shares traded lower by 1.43% at $90.19 in the premarket on the last check Tuesday.
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