Showa electrician, a chip material supplier, warned that the price of chip materials would rise further

Source: Hexun Jinwu information

    It is reported that Showa denko K.K., a key chip material supplier of companies such as TSM and ifnny, and a Japanese chemical company, recently said that it is expected to further raise prices and cut unprofitable product lines to meet a series of economic challenges faced by the $550billion semiconductor industry.

    Hideki somemiya, the company‘s chief financial officer, said in an interview that this is based on at least 12 interest rate hikes that have occurred in the world this year, reflecting the impact of supply chaos caused by the COVID-19, the surge in energy costs caused by the conflict between Russia and Ukraine, and the sharp depreciation of the yen. He added that the situation was unlikely to improve significantly until at least 2023.

    Somemiya pointed out that Showa electrician has been forced to pass on more costs to customers. As a key supplier of chemicals used by downstream chip manufacturers and other manufacturers such as Toyota, Showa Electric‘s rising prices may squeeze profit margins or force customers to follow suit.

    It was previously reported that chip manufacturers such as TSMC and Samsung Electronics (ssngy) had informed their customers that they intended to raise prices.

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