This comes on top of at least 12 rate hikes that have already occurred globally this year, reflecting the impact of supply disruptions caused by the new crown epidemic, soaring energy costs due to the Russia-Ukraine conflict and a sharp depreciation of the yen, Hideki Somemiya, the company's chief financial officer, said in an interview. The situation is unlikely to improve significantly until at least 2023, he added.
Somemiya noted that Showa Denko has been forced to pass on more costs to customers. As a key supplier of chemicals used by downstream chipmakers and other manufacturers such as Toyota, Showa Denko's price hikes could squeeze margins or force customers to follow suit.
This follows reports that chipmakers such as TSMC and Samsung Electronics (SSNGY) have informed their own customers that they intend to raise prices.
Japanese chemical company Showa Denko (Showa Denko K.K.), a supplier of key chip materials to companies such as TSM and IFNNY, has said it expects to raise prices further and cut unprofitable product lines in response to a series of economic challenges facing the $550 billion semiconductor industry, it has been reported.
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