Intel is warning its customers that chip prices are set to increase before the end of the year.
As Nikkei Asia reports, prices are expected to rise on a wide range of Intel chips in the autumn. No product category looks to be safe, including the CPUs in our computers and the processors powering servers in data centers around the world.
Intel confirmed the price rises are coming in a statement to Nikkei Asia, “On its Q1 earnings call, Intel indicated it would increase pricing in certain segments of its business due to inflationary pressures. The company has begun to inform customers of these changes.”
As to how big the price changes will be, the range is expected to be from a single-digit percentage increase to above 20% depending on the type of processor. The new pricing is apparently still being finalized internally, and will be guided by just how high inflation gets in different areas of the world and the impact that has on the chip materials Intel relies on. It also doesn’t help matters that PC shipments are suffering a worse-than-expected decline.
Ultimately, it’s Intel’s customers that will end up showing us how much more expensive processors have become. New laptops and desktop PCs will launch at slightly higher prices, as will products such as wireless routers, NAS devices, and anything else that we all forget has an Intel chip inside.