Samsung has officially announced that it plans to raise prices for some of its semiconductors. The company’s hardware solutions are used in a number of third-party products, including NVIDIA. The Korean giant’s change in strategy was prompted by a desire to fund the expansion of its S5 Fab plant in Pyeongtaek, South Korea.
High demand creates problems for Samsung Foundry, which cannot produce the required number of components for all of its customers. The expansion of the Pyeongtaek facility will be of strategic importance to Samsung. The big disadvantage is that the costs must be compensated for by the increase in the cost of production.
The current industry situation is also hampering Samsung’s plans. The lack of components causes additional difficulties in establishing the necessary production. The crisis is limiting the options for businesses, but Samsung still hopes to tackle the challenge.
The Samsung Foludry S5 line is the most advanced product line utilizing Extreme Ultraviolet Light (EUV) technology. The purchase of new EUV scanners will cost $ 120-150 million. One of the most in-demand products right now is the NVIDIA GeForce RTX 3080, and this graphics card will also suffer from Samsung’s plans.