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Intel set to hike chip prices amid supply chain crisis

IANS
Updated: July 14th, 2022, 17:49 IST
in Business, Sci-Tech
0
intel.(photo:Pixabay.com)/ IANS

intel.(photo:Pixabay.com)/ IANS

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New Delhi: Chip-maker Intel is rising prices on a broad range of microprocessors owing to a supply-chain crisis in the tough global macro-economic environment, the media reported  Thursday.

According to Nikkei Asia, the company informed customers that it “will raise prices on a majority of its microprocessors and peripheral chip products later this year, citing rising costs”.

The company is yet to finalise price hikes which could take Intel’s flagship products such as central processing units for servers and computers into account, according to the report.

The hike will also include products like chips for Wi-Fi and other connectivity options.

In April, Intel CEO Pat Gelsinger said that he expects the semiconductor industry to suffer supply shortages until 2024.

Gelsinger explained that the issue may drag on due to a lack of key manufacturing components.

“In the supply chain, lockdowns in Shanghai and the war in Ukraine have demonstrated more than ever that the world needs more resilient and more geographically balanced semiconductor manufacturing,” he said.

The chip shortage cost the US economy $240 billion last year.

“We expect the industry will continue to see challenges until at least 2024 in areas like foundry capacity and tool availability,” Gelsinger noted.

According to Counterpoint Research, Global semiconductor chip shortages are likely to continue easing during the second half of 2022 as demand-supply gaps decrease across most components.

IANS

Tags: ChipsIntel
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