Products that rely on semiconductors are set to get even more expensive as chip foundries prepare to increase their prices, according to analysts.
The Hsinchu-headquartered firm is reportedly planning to increase its prices by single digit percentage points. It has cited looming inflation concerns, rising costs and its own expansion plans as the reason for the price rises.Elsewhere, rival Samsung is set to increase its chipmaking prices by up to 20%, according to a Bloomberg report last Friday. Samsung did not immediately respond to a CNBC request for comment.
Despite an intensifying cost of living crisis, companies that integrate chips into their products may have to start passing on costs to consumers. O'Donnell said that he expects PCs, cars, toys, consumer electronics, appliances, and many other products to get more expensive.Syed Alam, global semiconductor lead at, told CNBC that the magnitude of any price increases will depend upon the share of semiconductor cost in the overall product cost. He added that it will also depend on the ability for manufacturers to cut costs in other areas and the competitive landscape of each product category.