ACs, mobile phones, cars to get more expensive; here's why

From cars to ACs to your mobile phones, everything that depends on the semiconductor chips is going to get expensive. Not because of the shortage this time but as chip foundries prepare to increase their prices.

The world’s biggest foundries — including Taiwan Semiconductor Manufacturing Company, Samsung and Intel — are considering price hikes even as they have already increased prices 10-20 percent in the past year, CNBC reports.

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The foundries are increasing their prices because it’s becoming more expensive for them to fund their growing operations. The chemicals used in chip manufacturing have increased 10-20 percent, as per the report. Similarly, the labor required to build new semiconductor facilities has also seen shortages and increased wage rates.

Samsung is set to increase its chipmaking prices by up to 20 percent, according to a Bloomberg report last Friday.

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