The PC hardware market right now is not a pretty sight, so it’s nice to hear one of the companies arguably at least in part responsible acknowledging how bad things are from a customer’s perspective. Even if that is taken with the giant pinch of salt considering it’s being approached from a business perspective, and discussing the ability for other companies to absorb costs.
As The Chosun Daily reports, SK hynix group chairman (ie, head of the board) Chey Tae-won recently admitted to the the press that memory prices are “abnormally high” and said “there are limits to how much prices can be raised”. Apparently the company is considering building a factory in the US to help with supply and trade pressures.
“Supply must be increased to lower prices, even for the sake of semiconductor companies… Memory prices are currently at an abnormally high level. While AI companies can absorb increased costs through investments, PC and smartphone manufacturers have no choice but to pass semiconductor price hikes onto product prices.”
“Since most customers for these products are individuals, there are limits to how much prices can be raised. To prevent ‘chipflation’—where rising chip prices drive up finished product costs—supply must be increased.”