NVIDIA, AMD, and Intel Product Prices Expected to Inflate

/ 5 years ago

NVIDIA, AMD, and Intel Product Prices Expected to Inflate

If you’re in the market for NVIDIA, AMD, and Intel products, best make your move before the end of the year; according to a new report, the trio could mark prices up by around 20% in 2018. Why? Because silicon prices are expected to inflate by that very figure. In fact, this is the same price rise we saw from 2016 to 2017. That 20% rise, though, is a conservative estimate; prices could further rise by an even greater percentage. The report comes courtesy of Japanese silicon manufacturer SUMCO (via Etnews), which warns of a silicon shortage and associated price rise. Indeed, SUMCO provides up to two-thirds of the world’s wafer, so its projections are to be taken seriously.

Prices Expected to Inflate

Etnews reports that SUMCO announced its fourth-quarter performance which estimates that 300mm wafer prices will be 20% higher in the next quarter. Along with Shin-Etsu Chemical, SUMCO provides the world’s silicon; in fact, SUMCO accounts for around 66% of the world silicon market. As a result, SUMCO is adjusting silicon wafer prices following long-term supply-and-demand contract agreements with major semiconductor manufacturers; these contracts include yearly, semi-yearly, and quarterly prices, so price rises could extend beyond the short-term.

In addition, SUMCO CEO Hashimoto Mayuki said:

“We are also planning to increase price of silicon wafer by 20% in 2018. Price of silicon wafer will continue to rise in 2019.”

Add this to the global DRAM shortage, and we’ll be paying through the nose for chip-powered – whether that’s CPU or GPU – tech in 2018.

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