According to a recent report by Nikkei Asia, Intel has informed customers of its plans to raise prices for its processors and peripheral chips this fall. Nikkei Claims that, according to three industry executives with direct knowledge, the alleged cause of rising chip production costs is due to rising electricity, raw material, transportation and labor costs. construction site.
Inflation is also considered another factor forcing Intel to raise its prices . For now, it's important to note that this is unconfirmed news, but it is supported by an Asian newspaper.
Intel is forced to raise prices
Intel is reportedly considering raising prices on virtually all of its products , including processors for consumer and server computers, as well as Wi-Fi chips . The potential price increases could vary from product to product.
A single-digit increase of up to 10%–20% is expected for some reference models. Among the products that could become more expensive this fall are flagship CPUs for desktop PCs, laptops, and servers. This would significantly increase the price of new pre-built PCs or the cost of upgrading. These higher prices could even lead service providers, such as data centers or cloud providers, to raise their prices.
Intel would have already begun to inform its customers of the imminent price increases. But he would not have detailed the magnitude of the price increase in question. An Intel statement released by the Nikkei said that in its first-quarter earnings call, Intel indicated it would raise prices in certain segments of its business due to inflationary pressures.
Companies like AMD, Nvidia, Xilinx, Marvell, Realtek, Phison, and Silicon Motion are experiencing the same inflationary problems as Intel, so if prices don't rise too much, many manufacturers might choose their products over Intel's. Intel is expected to release its Q2 2022 report on July 28, so we may have additional information about upcoming price increases at that time.
Source: Tom's Hardware
