By Sam Boughedda
Intel (NASDAQ:INTC) has told customers it will raise the price of most of its microprocessors and peripheral chip products, according to a report from Nikkei Asia on Thursday.
The company has pointed to rising costs as the reason for the move, Nikkei said, citing three industry executives with knowledge of the matter.
The US chipmaker will reportedly raise prices this autumn on major products, including central processing units for servers and computers, chips for Wi-Fi, and many others.
Nikkei's sources told the outlet that the hikes are necessary due to soaring materials and production costs, although they have yet to finalize the percentage increase, which could vary based on the chip. However, they said it is likely to range from a "minimal single-digit increase to more than 10% and 20% in some cases."
Companies are dealing with surging inflation globally, with the US reporting on Wednesday that consumer prices rose 9.1% in June.
Demand for gadgets such as smartphones, games consoles, laptops, and TVs has slowed this year after surging during the pandemic, and inventories are building.
Acer, an Intel client, reportedly said on Wednesday that the company is no longer suffering a chip shortage, and some chip suppliers' CEOs have called the company "to buy more chips from them." Intel itself recently warned of potentially weakening demand.
Intel told Nikkei Asia on Thursday that after previously warning of price increases, it "has begun to inform customers of these changes."