Apple is likely to face further increased chip prices as supplier TSMC contends with additional increased costs, Bloomberg reports.
Japanese chemicals firm Showa Denko K.K. supplies vital chip fabrication materials to TSMC and is now being forced to drastically increase prices on the back of the global chip shortage. Other component makers and material suppliers are making similar moves in the semiconductor industry amid a wider price squeeze.
Showa Denko Chief Financial Officer Hideki Somemiya said “A big theme this year common to all the players in the materials industry is how much cost burden we’d be able to convince customers to share with us. The current market moves require us to ask twice the amount we had previously calculated.”
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