Inflation & global situation: chip manufacturers raise prices significant

Electronics products could become even more expensive in the next few months, meaning that manufacturers and buyers will have to be prepared to pay higher prices. The background is inflation-related price increases at the large contract manufacturers, above all TSMC.

As the Taiwanese industry service DigiTimes reports today, citing internal chip developer sources, TSMC plans to raise its prices significantly in the near future and has eliminated the usual discounts for the purchase of large quantities for most customers.

Price increases first start with older nodes

TSMC is said to want to initially raise the prices for chips that are manufactured with rather large structural widths on 8-inch wafers. The state-of-the-art 5 or 7 nanometer chips, which are mostly manufactured at TSMC on 12-inch wafers and are used, for example, in smartphones, tablets, PCs or game consoles as well as graphics cards, are not affected for the time being.

Instead, TSMC is said to be planning a 10-20 percent price increase for its 8-inch foundry services. This affects chips that are manufactured with structure widths of up to 150 nanometers and are therefore significantly less complex. It should therefore be a case of simpler chips, which are in any case significantly cheaper than the highly complicated and highly miniaturized chips with a very small structural width.

TSMC is likely trying to maintain its profit margin by raising the price as the company struggles with ever-increasing production costs. The material and energy prices for the chip manufacturer have recently risen massively due to the global economic and political situation, it is said. Other contract chip manufacturers are likely to have the same problems, which is why they are said to be soon to follow suit with price increases.

https://winfuture.de/news,128509.html

 

Sucks, it really does. But I think it's pretty much the same deal as before when CV-19 hit: chip manufs were crying about supply and prices went through roof, buit how hartrd were they *actually* hit?. I'm not saying this didn't happen, but the rules of capitalism are made and monitored by those who profit from capitalism. Are we really to believe chip profits were actually hurt that bad by the global situation? I'm actually asking, I have not seen quarterly reports, but I'm pretty sure they were not. So now the current global situation has hit oil, and prices are supposed to compensate for the demand and shortages and such... except oil quarterly reports were profitable across the board even during the pandemic, and nobody was buying gas... Hmmmm.

Take for example the Graphics card issue: the shortages were on the major costings cards, the big daddies from Nvidia and AMD. Can't buy a decent card for under $1000, STILL, and midrange cards costing 700-800 still. But the shortages were not top to bottom, the lower range of chips had higher yields and were almost always readily available, u can hit Newegg right now and buy a low midrange card all damn day, they are and have been fully in stock for a year now... yet the prices are still relatively stellar. HMMMM. The market should reflect shortages, but low-end cards have chip yields almost identical to before COVID hit. It seems to me the suppliers are crying foul for a broken back when all that's really wrong was a hangnail... And we the consumer not only feel for it, we fucking sympathized with the suppliers for it.

I don't always believe the reports. There's not much reason I see for chip supply and demand should suffer if the issue is war with Russia and Ukraine, Russia was a big buyer, yes, but at the same time, chip supply is still catching up: take a major buyer out the game and we should have a supply readily catching up with the demand, which should leverage prices. And it's not like Ukraine is a big buyer of anything. Unless there's another angle I'm not looking at?

Again for me, it seems the players in the market are adjusting things so they can profit even more. The market should be balancing out by now, but if the market's suppliers are claiming mis-be-gotten and woes, should those woes actually exist?

I'm not saying I know everything, but I know when shit stinks.

 

Last edited: Mar 11, 2022

So, in order to catch the prices, we will be 'forced' to increase our own (including some extra profit added).

 

By design forget politics.#Agenda2030 The Fourth Industrial Revolution.

 

Thanks @B00nD0ggie for your opinion and assessment. Follow the money...

In the Covid crisis, tech companies in particular earned more.
Smaller companies in particular are bought up with the money from investors. However, the investor wants to take a return or price gains with him. Since unit labor costs in Vietnam are very low, Canon produces its printers in Vietnam. Fender produces its guitars in Mexico - another low-wage country. If everyone has a PC/Laptop, that means the market is saturated, only the gaming industry benefits from the faster newer DDR 5 standard,

so that the games become more and more realistic. SSD hard drives are also a new source of income for the industry. In addition, people are dying and the children who are not yet born are tomorrow's customers.

In the past, there were even price agreements, which is then a matter for antitrust law. Graphics cards were almost sold out because many used graphics cards to mine Bitcoin.

The increased raw material costs worldwide are of course priced in. Every company worldwide always tries to undercut the competition. Or they are very innovative and have a knowledge advantage and can thus win more customers.

Inflation - that is, the devaluation of money - is progressing and will remain so for a long time. Thanks to rising energy costs, many people have less money to spend. The standard of living is falling and wages are not rising, but stagnating.

 

It's all just big business, it's about money and power.

The Third Industrial Revolution: A Radical New Sharing Economy

 

I was told a LONG long time ago, for a business to be successful, charge a dollar for every penny lost. I don't really have a problem with that but eventually, there will be fewer and fewer dollars and more and more pennies. But again, capitalism writes its own rules, and the end consumer is a victim to them.

 

Price explosion for rapeseed and potatoes (Germany)

As of: 03/11/2022

Producer prices for agricultural products increased by 21 percent in January. Along with rapeseed oil, potatoes were the biggest price drivers. Consumers already have to pay significantly more for food - and this could be just the beginning.Producer prices for agricultural products rose by 21 percent in January compared to the same month last year, according to the Federal Statistical Office. At almost 24 percent, prices for plant products rose more sharply than those for animal products, which increased by around 19 percent.

According to the statisticians' calculations, potatoes became two-thirds more expensive within a year. A small harvest and low prices in 2021 are noticeable when comparing January 2022 and January 2021. Rapeseed prices also went up sharply, rising 60 percent. Canola can also be used as fuel in some engines, which appears to be driving up demand given the extreme increase in oil prices.War drives wheat priceThe price increase in crop products is mainly due to the rising price of grain since July 2020, the statisticians explained.

In January, it was 28.5 percent higher than a year earlier. The Ukraine war recently caused a further increase in the price of grain. There are estimates that three million tons less wheat will be exported from Russia and four million tons less wheat from Ukraine due to the consequences of the war, says agricultural expert Verena Laquai from the federal Thünen Institute.

There was a downward trend in the price of vegetables, which fell by five percent, and a 26 percent increase in the price of milk for animal products. The price of cattle rose by a good 30 percent and that of pigs by 3.7 percent. In the case of the latter, somewhat higher demand from the catering industry was noticeable, it said.

https://www.tagesschau.de/wirtschaf...el-preisanstieg-ukraine-krieg-weizen-101.html

 

Consequence of the Ukraine warOil price rises dramatically
Status: 07.03.2022

Fear of the consequences of the Ukraine war pushed the oil price up to almost $140 a barrel at times. This is the highest level since 2008. Experts believe far higher prices are possible.

A possible freeze on imports of oil from Russia temporarily pushed oil prices to their highest level since 2008 at the start of the week. In early trading, the price for a barrel (159 liters) of North Sea Brent rose by almost 18 percent to $139.13 and was thus close to the record level of almost $150 from summer 2008. Most recently, the Brent price was just under eleven percent or $12.57 to $130.67. This accelerated the rise in oil prices over the past few days.

Since Russia's invasion of Ukraine, the price of Brent has risen by around a third, having already risen in the weeks before. The price has risen by around two-thirds since the end of 2021. The development of the price for a barrel of the US variety West Texas Intermediate (WTI) looks similar. In the morning, the WTI price rose by a good nine percent or around eleven dollars to more than $126 after temporarily exceeding the $130 mark for the first time since 2008.

www.tagesschau.de/wirtschaft/weltwirtschaft/oelpreis-ukraine-russland-101.html

 

Yes, that's called inflation.

 

DAAAAMN!
BIG NEWS.
Russia lifts patent and trademark restrictions.
Things are getting crazier with each hour now.

https://www.washingtonpost.com/business/2022/03/09/russia-allows-patent-theft/

 

" McDonald's, Starbucks and Coca-Cola cease operations in Russia amid growing public pressure."

A few positive thought in hard times:

- Starbucks goes and with it coffee to go mugs and an in running food and drink culture.
- Mac Donalds goes and with it its overweight unhealthy junk food.
- Finally, Coca Cola goes and with it are the sugary drinks.

 

Russia will go the Chinese route of the 80s and 90s. Everything will be allowed to manufacture, no patents to worry about.
They will probably keep the mdconalds name and all the restaurants and keep selling stuff, what can the west do? The west already cancelled them on every level. Same for Starbucks.

 

I wish they would take that shit out of my country too!

 

In Russia, Mac Donald only had franchise, they didn't own the businesses, so all the places can still be open, if Putin decided to stop respecting patents, they can keep the name, otherwise, they can call it supermac or whatever.

 

Important note: until now, this thread beautifully managed to keep on the edge out of political comments.
Please keep it that way.

 

Yes, or in short, total spending has increased by 40% on average. The wages of a wage worker increased by an average of 2%. It's called inflation - or money redistribution.

 

We are destroying every meaning of a free and open market, that is going to hurt.

 

There is no such thing as a free market. Free markets are a myth as they are Darwinian by nature.

There is however open Equitable, sustainable and responsible commerce but it doesn't exist in the Neo-Liberal free-market capitalism model because it's based on cartelism and market dominance that produces unsustainable business models based on exploitive labour and resources.

There is a massive global market correction in the wind. Inflation is inevitable. Wars are very profitable and very costly.
As far as chips go that's why Behringer and Apple are trying to control their own destiny by becoming manufacturers.

 

Continued delivery problems at Behringer - Hardly any improvement in 2022

Of course, the worldwide supply problems with chips and other components are to blame, which Behringer also refers to when asked. Even the in-house chip production at Coolaudio seems to help only to a limited extent, because not only the special synthesizer chips are affected, but also many standard components that the company purchases on the free market like any other manufacturer.

And unfortunately, the prognosis doesn't look good: On its Facebook channel, Behringer is already preparing us for the fact that the year 2022 is unlikely to bring any improvement.
Source: www.gearnews.de/weiter-lieferprobleme-bei-behringer-aber-der-syncussion-kommt/