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Semiconductors

Japan's Sumco, Showa Denko to hike chip material prices 20-30%

Cost pressures could mean higher car, appliance prices for consumers

Sumco will raise the price of silicon wafers by 30%, while materials producer Showa Denko raised the price of all high-purity gas by more than 20%. (Screenshot from company websites).

TOKYO -- Japan's semiconductor material makers are moving to raise prices, as strong demand and the Ukraine war tighten supplies. The upward pressure on costs could translate into higher prices for products such as cars and home appliances.

Chip wafer maker Sumco will raise the price of silicon wafers, the basic substrate material used in semiconductor circuits. It plans to mark up prices for its long-term contracts with chip manufacturers by about 30% between 2022 and 2024.

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