Silicon wafers will go up in price and with it the chips will be more expensive

The price of a silicon wafer has increased by 20% from last year and will continue to increase by 20% in the coming year 2018. Korean media outlet Etnews has reported that the world's largest wafer supplier will raise its prices by 20% in 2018 and by an unannounced figure in the following year 2019.

Silicon will continue to rise in price until 2020 and so will technology

This manufacturer of silicon wafers is SUMCO, a Japanese company that, as we have said, is the largest supplier in the world by providing two thirds of the silicon wafers used to manufacture chips based on this material.

"We are also planning to increase the price of the silicon wafer by 20% in 2018." "The price of the silicon wafer will continue to increase in 2019."

The grace of the matter lies in the expression " planning to increase ", which suggests that the increase in prices is not, a priori, related to a depletion of reserves or an inability to meet demand. SUMCO estimates that global demands for silicon wafers will increase by one million units per month to 6.6 million units per month by 2020, a golden opportunity to earn more money, thereby limiting the ability to increase production to con It will earn more money.

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The explanation for this is simple, if demand increases but availability does so to a lesser extent, we will have a situation in which demand exceeds supply, and with this, wafer manufacturers will be able to do or want with prices. sounds a lot of something right?

This situation can keep the price of technology going up and up until a new material is found or regulatory bodies decide to do something about it.

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