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Monday, 21 July 2014 10:08

UMC to jack up its prices

Written by Nick Farrell



Chips are down prices are up

The dark satanic rumour mill has manufactured a hell on earth yarn claiming that Taiwan's United Microelectronics Corp (UMC), will raise the prices it charges some clients by 5 to 15 percent amid heated demand.

According to the Commercial Times reported clients who order less than 5,000 foundries monthly from UMC will see their prices rise by as much as 15 percent. UMC will demand that larger clients fill an entire season's worth of orders and previous price discounts of up to 5 percent will be rescinded.

The reason for the price rise is that UMC factories are flat out and there is strained capacity at chip players across the industry. Larger domestic rival TSMC unable to step in to meet the additional demand. The rumour has been stood up by Taiwan's Economic Daily News said that UMC and TSMC's clients are offering to pay between 3 and 5 percent more for the chips, also due to strained capacity and fierce industry demand.

Nick Farrell

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