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Silicon Wafer maker plan 20% price increase for 2018

First there was a DRAM shortage, now there is a silicon shortage

Silicon Wafer maker plan 20% price increase for 2018

Silicon Wafer maker plan 20% price increase for 2018

2017 wasn't a great year for PC builders, starting with DRAM and NAND price increases and ending with GPU shortages. Silicon is in high demand, so much so that the supply of Silicon wafers is now constrained. 

The Taiwanese Silicon Manufacturer GlobalWafers has confirmed that silicon prices will increase by 20% in 2018, having a knock-on effect on every PC component from NAND to DRAM and even CPUs, GPUs and every other chip imaginable. The Japanese wafer manufacturer SUMCO has already revealed similar price increases. 

These shortages are coming first from 300mm wafers, the most common wafers that are used when manufacturing modern CPUs, GPUs and RAM chips. This demand is driven by growing demand for DRAM, NAND and both consumer CPUs in the server, desktop and mobile markets, as well as increased demand in other markets like cryptocurrency mining ASICs.  

  

Silicon Wafer maker plan 20% price increase for 2018


GlobalWafers has plans to increase their production capacity, though this is not expected to increase their supply of chips by over 7%. More significant changes in production capacity are planned, but they cannot b implemented in the short term. 

These changes in pricing will affect the pricing of all major PC components, pouring salt into the wound that is already high component pricing. 

You can join the discussion on increases to Silicon Wafer pricing on the OC3D Forums

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Most Recent Comments

05-02-2018, 18:07:43

Avet
The market is going crazy. Memory manufacturers are getting away with increased prices. So why wouldn't we all increase our prices and ripoff byers?

Am I getting this wrong? But... Shouldn't manufacturing prices go down as the process evolves and becomes more optimized? Yes there are many contributing factors, but this really smells of artificial price bump.Quote

05-02-2018, 19:16:02

NeverBackDown
Quote:
Originally Posted by Avet View Post
The market is going crazy. Memory manufacturers are getting away with increased prices. So why wouldn't we all increase our prices and ripoff byers?

Am I getting this wrong? But... Shouldn't manufacturing prices go down as the process evolves and becomes more optimized? Yes there are many contributing factors, but this really smells of artificial price bump.
If memory prices increase then yes companies are going to raise prices as well. That's not ripping off anybody thats just business logic 101.

Prices are high because of shortages. Nothing to do with process nodes. high end memory is in everything nowadays. Iphones alone sell like some ridicoulus 70 million phones a year or whatever it is? That's a lot of memory chips. There's only so many fabs in the world and you can't put them all at 100% capacity in production because that leads to more equipment failures and higher chances of less yields which leads to less chips.. etc.Quote

05-02-2018, 21:17:13

Avet
Thing is that you don't get to be as strong as Samsung with just luck turning your way. They manufacture everything. Components for their phones, and everyone other's phones. They have people that have been handpicked, and trained from birth to predict market movements. Prices didn't raise over night. They all have the resources, and could build 10 more factories and meet the demands by now.

But i'll give them thumbs up on their business logic. Let's not invest in more factories to meet market demand, create false shortage, and earn 12x more money by doing nothing.Quote

05-02-2018, 21:27:57

NeverBackDown
I don't think you understand how business works or anything else you mentioned works. You also are ill informed if you believe this is all Samsungs fault.Quote
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