LinkBack URL
About LinkBacksRead more.Some sources say the price rises will be effective from October, others from Q1 2022.
Read more.Some sources say the price rises will be effective from October, others from Q1 2022.
At this point after seeing Nvidia making massive amounts of dosh - it makes me wonder whether many of these "leaked" reports are actually real,especially in light of the fact many larger customers of TSMC would have signed longterm contracts. It seems mighty convenient once all these reports come out(mostly not officially confirmed),that companies can make an excuse to massively increase prices way past any actual price increase. Then lo and behold these companies have made record net and gross margins. It almost sounds like some form of market manipulation.
An example was what happened to hard drive prices,after those floods many years ago. Companies "were forced" to jack up prices due to the problems,but then for years after that prices remained high per TB,and they did well out of it. Its also like when NAND becomes too cheap,all of a sudden some "disaster" like a slightly inebriated Pelican flying into the factory for 30 seconds,and causing 6 months of supply to suddenly sublimate into thin air.
Edit!!
Even Gamersnexus in their 6600XT review pointed this to out some degree,ie,just because the price of copper goes up by 2X,it might not mean much if the device uses $2 worth of copper.
Last edited by CAT-THE-FIFTH; 25-08-2021 at 02:54 PM.
Yeah it really is starting to feel more about companies taking advantage of the current climate rather than actually having 'real need' for price increases.
While I'm sure the costs have increased I very much doubt the overall increase will be anywhere near the increase the end consumer ends up paying.
Nothing suprises me , supply and demand , usual senario. This if true just rings of pure greed , been steadily raking in millions and now want an unhealthy chunk more. Striking a balance betweem profit and investment should be the case , if investors want more they should be piling it in here for future gains. Pushing to hard on their clients and the bubble will burst as it will reflect down the line to us customers of their clients , too dear and won't upgrade to the newer generations. There are other chip makers , providing we don't get another round of false price fixing, may take advantage of this. All the big names out there will be price concious of source materials for their products so they can price their items as competitively as they can.
We heard similar sky-is-falling stories when there were reports of substrate prices rising. Most all of them, naturally, neglected to mention how negligible this price increase was in the context of final products.
If price = up // then push cost to you know who, and add a little for yourself now you are at it.
End
Just a bit...Originally Posted by HEXUS
https://www.drewry.co.uk/supply-chai...ssed-by-drewry
I'm sure most of the other costs are not insignificant, especially when transporting the raw materials is already going to be significantly increased over the last two years.
Current companies is paying pennies for their product... if they can guarentie better yields for the increase in price, then it would justify itself, but they need to show the results before they can demand a rise in price.
Well it's a free market - they can charge what they like and if you prefer the yields from Samsung or Intel you can go there instead
Does Intel sell fab space?
They do now. https://www.intel.com/content/www/us...-services.html
They sorta have been for a while, but were quite limited in the customers they took on. Altera were one before they acquired them. I believe some of the major mobile infrastructure companies (the likes of Ericsson or Nokia, but I can't remember which exact companies) either planned to or do use Intel for their 5G portfolio too. The continued 10nm delays apparently caused some major headaches there, if I recall correctly.
Corky34 (25-08-2021)
While you're not wrong shipping container costs are no higher than they were in 2010 from what i can tell, and before the recent increases in shipping costs they were at all time lows, so low in fact that some shipping companies were operating at a loss.
Also what's the betting that when prices of both the raw materiels and shipping return to more sensible levels that we won't see those reduced costs passed onto consumers.
Things like competition are what largely dictate pricing in the longer term, so I would expect pricing to trend back downwards over time, but I wouldn't be surprised to see them float rather than fall like a rock.
If anyone doesn't like it they can feel free to open their own foundry and provide competition.
Not the most helpful or practical of suggestions though is it?
If you've got a spare $400 to $500 billion laying around that i could borrow then sure, if not that's a bit of a barrier to entry.
There are currently 1 users browsing this thread. (0 members and 1 guests)
Posting Permissions
Reply With Quote