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Intel Reportedly Announces CPU Price Increases to Its Partners

Reports come from Asia that Intel has already informed its customers that starting this fall there are new plans to increase the prices of its processors and peripheral chips. As expected, it is indicated that these price increases are related to increase in chip production costs, which were affected by electricity, raw material, transportation, fuel, and labor costs. It is also considered that inflation is another factor forcing Intel to raise prices.

Specifying the information, the price increase will affect practically all of its products, therefore in addition to the main ones, which are your processors for desktops, laptops and servers, their price will also increase your Wi-Fi chips or controllers (like Ethernet). Depending on the product, the cost increase will vary, as it is stated that the price increases will go from single digits, up to 10 – 20 percent in the worst case.

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According to Nikkei Asia, Intel has confirmed that it has started notifying its customers impending price increasesbut would not comment on the scale of the increase the company will make.

“In its call for investors to release its first quarter financial results, Intel indicated that it will raise prices in certain segments of its business due to inflationary pressures,” read an Intel statement published by Nikkei.

“The company has begun notifying customers of these changes.”

So, if Intel raises its prices, will affect almost the entire industry, and it is that the price of processors will become more expensive, and with it the price of portable or pre-assembled equipment. Added to this is Collateral damagesuch as the increase in the price of motherboards that use their WiFi or Ethernet connectivity (Intel/Killer), not to mention other types of FPGA-based products.

It remains to be seen whether this this is not an isolated problemand is that if Intel decides to raise the prices, the rest of the manufacturers such as amdthey may also choose to raise prices, not to mention other companies like Mavell, Phison or Silicon Motion (controllers), or sound chip maker Realtek.

Intel will present its financial results July 28so we don’t know if the information will become official on that day.

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