Shulou(Shulou.com)11/24 Report--

On August 23, according to DIGITIMES, sources at IC Design revealed that GE Core plans to increase the price of some of its manufacturing processes by 8% in 2023.

GE Core has just received a new order worth $4.2 billion from Qualcomm, encouraging it to raise quotations for some of its process products, according to sources. By 2028, GE Core will receive a total order commitment of $7.4 billion from Qualcomm.

Sources point out that IC designers are trying to renegotiate next year's manufacturing quotations with contract manufacturers while terminal demand is still sluggish, but TSMC plans to maintain its 6-8 per cent price increase plan from 2023.

An American customer of TSMC has agreed to accept a 7% increase in the contract factory's order next year, but the increased costs will be passed on to the end customer, the source said.

Samsung Electronics also hopes to raise the price of its chips by 20 per cent as contract manufacturers significantly increase the manufacturing yield of 5nm and 4nm processes, according to sources.

In addition, sources stressed that despite market concerns about the disappointing performance of many end markets in the second half of 2022, second-tier contract manufacturers such as UMC intend to keep prices stable.

Demand for consumer electronics devices has slowed rapidly since the second quarter of this year, leading to a mountain of inventory across the electronic supply chain. According to sources, many IC design companies and their downstream customers are under pressure to reduce inventory.

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