CPU and GPU prices might increase by 25% until 2025

A new analysis warns that silicon wafer prices are poised to break records over the next few years, just as pricing and availability trends for items like CPUs and GPUs appear to be going in the right way. According to the China Times, pricing for 12-inch wafers will surpass $200 for the first time in 2024. It goes on to say that because all of the established silicon wafer manufacturers have signed long-term contracts with their customers to lock in pricing, spare wafers may be difficult to come by.

A perfect storm of conditions, including high/increasing demand and a business cycle mismatch, will drive the predicted 20 to 25% wafer price increase between now and 2025. The cost of a silicon wafer, on the other hand, is frequently a fraction of the cost of the finished product.

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CPU and GPU prices might increase by 25% until 2025

There has been a lot of news about new chipmaking factories starting up around the world in 2021 and 2022. Intel is expanding into Europe, while Samsung and TSMC are building significant facilities in the United States. However, businesses like GlobalWafers, Shin-Etsu, and Sumco provide the critical input for these advanced chipmakers: silicon wafers. These businesses do not have expansion goals that are substantially similar to those of the chipmakers.

According to the China Times, Taiwan’s GlobalWafers, a significant contributor to the sector, has pre-sold all of its wafers through 2024. It was also learned that Japan’s Shengco has sold out of wafers till 2026.

The three largest silicon wafer manufacturers, on the other hand, “have already received prepayments from clients and initiated a large-scale expansion plan,” according to the China Times. However, these measures will not begin to make an impact until 2024 at the earliest.

also read:

Apple to launch its iPhone 14 Max and iPhone 14 Pro Max with larger camera bumps

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