The global semiconductor shortage eventually hit consumers. As semiconductor prices rise, consumer prices of electronic devices such as laptops and printers are jumping one after another. While major products such as smartphones are also under pressure to raise prices, analysts say the “semiconductor crisis” is increasing inflationary pressure.
The Wall Street Journal (WSJ) reported on the 21st (local time) that the global semiconductor shortage is pushing up the price of semiconductors such as laptops and printers. According to price information site Kippa, Amazon has raised the price of Taiwanese ASUS’s gaming laptop from $900 to $950 starting this month. HP’s Chromebook price went up $30 from $220 to $250. According to Bernstein Research, HP raised prices of personal computers and printers by 8 percent and 20 percent, respectively, this year. The reason why prices of computers and peripheral devices have soared is that prices of semiconductors have jumped.
The semiconductor industry has recently increased production in unison to solve the global shortage of semiconductors for vehicles, and prices of semiconductor materials such as silicon wafers and various metal materials have soared in the aftermath. As a result, semiconductor companies and computer manufacturers are passing on the increase in production costs to consumers one after another.
At the same time, the explosion in demand for electronic devices such as computers and smartphones is also affecting semiconductor prices as “non-face-to-face” services spread due to the COVID-19 incident. According to the World Bureau of Semiconductor Trade Statistics, global semiconductor sales reached an all-time high of about 100 billion in April. The number of semiconductors sold in January last year was about 73 billion. Demand for semiconductors has soared since the COVID-19 incident.
Computer manufacturers have also announced additional consumer price hikes. On the 27th of last month, HP CEO Enrique Lores said, “We raised consumer prices due to lack of parts. We can adjust prices further in the future to reflect the increase in manufacturing costs.”
Thomas Sweet, chief financial officer (CFO) of Dell Technologies, also said, “We will adjust product prices appropriately as parts costs rise.” In May, ASUS said, “We are measuring product prices according to the prices of parts that have already risen.”
Semiconductor companies argue that price hikes are inevitable. Vincent Roche, CEO of Analog Devices, a semiconductor manufacturer, stressed, “We are not trying to make profits by raising prices taking advantage of the shortage of semiconductors.” In fact, Digiki Electronics, one of the largest electronic parts distributors in the U.S., raised prices of semiconductor-related parts by 15 percent this year. WSJ said that other electronic devices such as smartphones are also under pressure to increase prices. The CEO of Broadcom, a telecommunications semiconductor company, recently said, “We are witnessing inflation in production costs,” adding, “Customers have understood the situation and endured price hikes.” Broadcom is supplying semiconductors for smartphones to Apple and Samsung.
The problem is that semiconductor prices could put more pressure on overall consumer prices. According to the U.S. Department of Commerce, prices of electronic devices rose 2.5 percent last month from a year earlier. It’s the highest in 10 years. In particular, prices of microcontroller (MCU) semiconductors used in smart devices and automobiles are soaring. According to Supply Frame statistics, the average price of 20 major MCUs rose 12% in a year. 사무용 노트북 추천
“The price of raw materials has recently risen further, and people don’t think this is a temporary situation,” said Dale Ford, a senior analyst at the Electronic Components Association (ECIA). “The consumer price hike will continue.”