Samsung To Hike Semiconductor Chip Prices 20% Immediatly, this will not be painless or transitory

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Samsung Electronics is preparing to increase prices for chip contract manufacturing in the second half of this year which comes as no surprise given skyrocketing cost pressures eating away at the company's margins.

Samsung's contract-based chip prices are set to increase between 15-20% given the level of manufacturing complexity, Bloomberg said, citing people familiar with the matter, adding the new pricing model has been discussed and negotiated with clients.

Samsung's decision comes as the cost of energy, raw materials, equipment, freight, and labor are rapidly soaring. The move was "inevitable,"