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This year, prices for processors and other Intel products will rise due to rising costs, the report said. asian nikkei.
The medium pointed out that the giant semiconductors informed its clients about this measure.
Intel not only produce processors for consumer computers. The company also sells server processors, Wi-Fi chips and other products, which have recently added graphics cards based on the Intel Arc architecture.
asian nikkei pointed out that three executives in the industry reported price increases in the future.
Why would Intel raise prices?
Executives said manufacturing and material costs rose amid inflation felt around the world. In June alone, the US registered inflation at 9.1%.
As noted asian nikkeithese costs will range from single digits up to 20%, depending on the product.
Intel came to this situation
At a conference for shareholders and analysts Intel in April, CEO Pat Gelsinger hinted that the company would be looking to raise prices.
Gelsinger talked about “scaling up products at a higher cost.” At the same meeting, CFO Dave Zimmer pointed to “specific price increases in certain segments.”
Intel responds
Intel communicated with asian nikkei to clarify the issue. “Regarding the announcement of financial results for the first quarter, Intel indicated that it would raise prices in certain segments of its business due to inflationary pressures. The company has begun informing its customers of these changes.”
We will definitely learn more details about this strategy during the conversation with shareholders and investors. Intel sum up the results of the second quarter, which will be held on July 28.
It’s not just Intel
Giant Taiwan Semiconductor Manufacturing Company (TSMC) It is the largest contract manufacturer of chips. This company has already warned its customers that it will raise prices by “single digits” from 2023.
Other companies have joined. China International Semiconductor Manufacturing announced that it is estimating a price increase for its services after a 10% increase in the price of supplies impacted its bottom line.
Although demand for electronics is declining in the face of a possible global recession, it seems that chips will inevitably rise in price.
Source: RPP
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.