According to the latest report, sources at the IC design company revealed that GF plans to increase the price of some of its manufacturing processes by 8% in 2023. GlobalFoundries just received a new order worth $4.2 billion from Qualcomm, sources said, encouraging it to raise its bids for some of its process products. GF will receive a total order commitment of $7.4 billion from Qualcomm through 2028.
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IC design firms struggled to renegotiate manufacturing offers for next year with foundries as end demand remains sluggish, but TSMC intends to maintain its 6-8% price hike plan starting in 2023, the sources pointed out. One of TSMC’s U.S. customers has agreed to take orders from the foundry next year to raise prices by 7 percent, but the increased costs will be passed on to end customers, the sources said.
Samsung Electronics is also looking to raise the price of its chips by 20 percent as foundries ramp up manufacturing yields on 5nm and 4nm processes, the sources said. In addition, the sources emphasized that second-tier pure-play foundries such as UMC intend to keep prices stable despite market concerns about disappointing performance in many end markets in the second half of 2022.
Demand for consumer electronics equipment has slowed rapidly since the second quarter of this year, causing inventories to build up across the electronics supply chain. According to sources, many IC design companies and their downstream customers are under pressure to reduce inventories.
