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Taiwan Cuts Chip Production prices by 10 to 15 Percent

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."

  • AznCracker
    So what does that mean for us?
    Reply
  • r0aringdrag0n
    BUY MOAR CHIPS NAO
    Reply
  • freggo
    Just part of a normal production cycle.
    Reply
  • lockhrt999
    If only Intel could reduce prices by 10%. That would be win win for customers.
    Reply
  • digiex
    If only Intel could reduce prices by 10%. That would be win win for customers.

    It would kill the processor business of AMD.
    Reply
  • amuffin
    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.
    Reply
  • CaedenV
    Please let this mean that 8GB chips will drop :) That would be awesome!
    Reply
  • JohnnyLucky
    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.
    Reply
  • de5_Roy
    cheaper ram, gfx cards and ssd? i can only hope....
    Reply
  • illfindu
    Not to nit pick but cheaper ram? Have you seen ram prices iv gotten good 1600 speed name brand 8GB sets for
    Reply