According to Bloomberg, semiconductor material supplier Showa Denko plans to further raise prices and cut unprofitable product lines in response to economic challenges facing the semiconductor industry.
Showa Denko's chief financial officer Hideki Somenomiya said supply disruptions caused by the pandemic, soaring energy costs due to the war and a sharp depreciation of the yen were unlikely to improve significantly until 2023, forcing the company to raise prices to pass on costs.
The report pointed out that Showa Denko is a supplier to semiconductor manufacturers such as TSMC and Infineon, and the price increase may affect their profits and force semiconductor manufacturers to follow up with price increases.
“A big theme shared by materials companies this year is how much of the cost burden we can convince our customers to share, and current market conditions have forced us to ask for twice the original estimate,” says Somemiya.
