Intel starts informing customers of price-hike plan

[hist78]

It will be interesting to see if AMD will raise the price too. On the other hand, I thought PC demand is going down for the coming months. To raise the product price in such market condition is an unusual approach.

Chipmaker Intel starts informing customers of price-hike plan

Intel Corp said on Thursday it has started informing customers of its plan to raise prices for many of its chip products due to rising costs, a move that the company had first hinted in its first-quarter earnings call on April 28.

www.reuters.com

 

[Jozo035]

Insane.

Intel is getting $52B (from taxpayers) so they can manufacture more chips basically for free while still getting money from customers (taxpayers)... which is still not enough so they are increasing prices to get even more money (aprox. $15B).

Plus money from EU and probably other regions...

Just, what the ... are they thinking.

$52B divided by number of US households (122.4M) is $425.

This means that every household in USA should get one Core i9 processor for free...

 

[benb]

Some fabs experience less inflation; it's balanced by crashing exchange rates.
Intel has fabs in US, Ireland and Israel, so their costs are in USD, EUR, and essentially EUR. I don't know, maybe shekels have some differences, but I'm assuming it's the same as EUR.
Intel suppliers are global, many are in Japan. This is true of a lot of fabs, Japanese materials are the best.
JPY/USD has exploded lower in the last 6 months, as inflation has raced ahead and BOJ has done yield curve control.
So despite high inflation, Intel is paying less to operate their fabs; the exchange rate reduces their costs with every order while inflation will bite in the annual price renegotiations (usually in January, but could be anytime, Q2, Q3, Q4).
On the other hand: They are in a tight labor market in the US. A big effect of inflation in the US is the wage-price spiral. It is being felt in semiconductors, as fab expansions strain the labor pool. This is a large fixed cost, and probably bigger than the JPY/USD benefit.
Thus, to pay the workers more, Intel needs to raise prices.

 

[Daniel Nenni]

It will be interesting to see if AMD will raise the price too. On the other hand, I thought PC demand is going down for the coming months. To raise the product price in such market condition is an unusual approach.

Chipmaker Intel starts informing customers of price-hike plan

Intel Corp said on Thursday it has started informing customers of its plan to raise prices for many of its chip products due to rising costs, a move that the company had first hinted in its first-quarter earnings call on April 28.

www.reuters.com

Remember, Intel is paying TSMC to make wafers now so the costs are a bit higher. This will be the first time Intel an AMD will be on the same process node (TSMC N3). Design vs Design, interesting times, absolutely!

 

[VCT]

I don't believe AMD will raise Zen 4 Ryzen 7000 Series CPU price. The rumor MSRP is already insane for consumers.

 

[lilo777]

Insane.

Intel is getting $52B (from taxpayers) so they can manufacture more chips basically for free while still getting money from customers (taxpayers)... which is still not enough so they are increasing prices to get even more money (aprox. $15B).

Plus money from EU and probably other regions...

Just, what the ... are they thinking.

$52B divided by number of US households (122.4M) is $425.

This means that every household in USA should get one Core i9 processor for free...

Where did you get information about Intel getting $52B? Sounds like your fantasy.