Intel has informed customers it will raise prices on a majority of its microprocessors and peripheral chip products later this year, citing rising costs, Nikkei Asia learned.
The biggest U.S. chipmaker plans to raise prices this autumn on flagship products such as central processing units for servers and computers, where it dominates the market, as well as on a wide range of other items, including chips for Wi-Fi and other connectivity, according to three industry executives with direct knowledge.
Intel says the price hikes are required because of the surging costs for production and materials, the executives said. The percentage increases have not been finalized, and could be different for different types of chips, but are likely to range from a minimal single-digit increase to more than 10% and 20% in some cases, one of the people said.
Intel's move comes amid an inflation surge in the U.S. and around the world. The U.S. reported consumer prices rose 9.1% in June, a 40-year record.