Sign in with
Sign up | Sign in

Taiwan Cuts Chip Production prices by 10 to 15 Percent

By - Source: Digitimes | B 26 comments

Wafer manufacturing in Taiwan is getting substantially cheaper this year.

Digitimes reports that prices for wafers built on mature node processes have been dropped by 10 to 15 percent because of declining production costs. Of course, it is not just a selfless move; the intention is to convince customers to order more chip and build up inventory.

That, however, may not be such an easy argument, given the general uncertain business outlook and macroeconomic challenges. While the publication said that chip inventories are at "safe levels", it is unlikely that chip customers will be rushing into premature orders if they don’t know how the market will develop in the new year.

Digitimes noted that chip inventories were at "excessive levels between the end of the second quarter and the beginning of the third quarter," which was causedby a "combination of negative macroeconomic factors such as weak consumer confidence in the U.S. and the European crisis."

Display 26 Comments.
This thread is closed for comments
Top Comments
  • 19 Hide
    digiex , January 1, 2012 4:16 PM
    Quote:
    If only Intel could reduce prices by 10%. That would be win win for customers.


    It would kill the processor business of AMD.
  • 12 Hide
    r0aringdrag0n , January 1, 2012 3:34 PM
    BUY MOAR CHIPS NAO
Other Comments
  • 0 Hide
    AznCracker , January 1, 2012 3:19 PM
    So what does that mean for us?
  • 12 Hide
    r0aringdrag0n , January 1, 2012 3:34 PM
    BUY MOAR CHIPS NAO
  • 7 Hide
    freggo , January 1, 2012 3:56 PM
    Just part of a normal production cycle.
  • 3 Hide
    lockhrt999 , January 1, 2012 4:13 PM
    If only Intel could reduce prices by 10%. That would be win win for customers.
  • 19 Hide
    digiex , January 1, 2012 4:16 PM
    Quote:
    If only Intel could reduce prices by 10%. That would be win win for customers.


    It would kill the processor business of AMD.
  • 8 Hide
    amuffin , January 1, 2012 4:45 PM
    digiexIt would kill the processor business of AMD.

    Sometimes I think intel can kill off amd at any given time while still keeping the same prices, honestly i don't think its amd that is keeping their prices down.
  • 8 Hide
    CaedenV , January 1, 2012 4:59 PM
    Please let this mean that 8GB chips will drop :)  That would be awesome!
  • 2 Hide
    JohnnyLucky , January 1, 2012 5:23 PM
    I am inclined to agree with freggo. It's just a typical production cycle. Over the years we've seen it happen many times with quite a few products.
  • 8 Hide
    de5_Roy , January 1, 2012 5:34 PM
    cheaper ram, gfx cards and ssd? i can only hope....
  • 3 Hide
    illfindu , January 1, 2012 5:57 PM
    Not to nit pick but cheaper ram? Have you seen ram prices iv gotten good 1600 speed name brand 8GB sets for
  • 5 Hide
    atminside , January 1, 2012 8:35 PM
    I keep face palming my self every time I remember on how much I spent on memory on my 486.
  • 2 Hide
    bawchicawawa , January 1, 2012 9:06 PM
    amuffinSometimes I think intel can kill off amd at any given time while still keeping the same prices, honestly i don't think its amd that is keeping their prices down.


    It also reduces the price for AMD as well... HURP DURP.
  • 1 Hide
    bawchicawawa , January 1, 2012 9:08 PM
    Whoops, my comment was pointed at "Digiex". Sorry, amuffin. =]
  • 1 Hide
    Anonymous , January 1, 2012 9:39 PM
    Even if they drop prices it will not make it's way to consumers, look at how much american's pay in corn subsidies and the price of doritos has not fallen.
  • -1 Hide
    madooo12 , January 1, 2012 9:56 PM
    amuffinSometimes I think intel can kill off amd at any given time while still keeping the same prices, honestly i don't think its amd that is keeping their prices down.

    so why doesn't it do that, maybe "out of the kindness of the web" i mean the processor industry

    but i think now the 7970 should have less price and maybe some future AMD CPUs
  • 0 Hide
    madooo12 , January 1, 2012 10:01 PM
    madooo12so why doesn't it do that, maybe "out of the kindness of the web" i mean the processor industrybut i think now the 7970 should have less price and maybe some future AMD CPUs

    i mean't didn't do that "out of the kindness of the web"
    you understand
  • 0 Hide
    cumi2k4 , January 2, 2012 12:00 AM
    mechanical harddrive vendors, take note of this...
  • 1 Hide
    de5_Roy , January 2, 2012 4:01 AM
    Quote:
    so why doesn't it do that, maybe "out of the kindness of the web" i mean the processor industry

    but i think now the 7970 should have less price and maybe some future AMD CPUs

    i'll throw some random words around...
    antitrust. unfair business practice. monopoly. government.
  • 0 Hide
    alyoshka , January 2, 2012 5:41 AM
    I doubt if the 10 to 15 percent cut will ever go down to the consumer.
  • 0 Hide
    madooo12 , January 2, 2012 5:48 AM
    de5_royi'll throw some random words around...antitrust. unfair business practice. monopoly. government.

    He said intel CAN do it if they wanted (he didn't say laws stopped them)
    i'm saying why
    the laws you mentioned apply when there are more than one company in the market, if intel gets rid of AMD the laws will be useless against them
Display more comments