According to a report from Korean-based news outlet, ETNews, SUMCO, a Japanese silicon wafer manufacturer responsible for over 60 percent of the world’s supply, is planning on increasing prices by 20 percent in 2018. Then, another price increase is supposed to take place in 2019.
A quote from SUMCO CEO, Hashimoto Mayuki can be found in the report, in which he confirms the plans to raise prices. Silicon wafers are used widely in the tech world as the basis for DRAM, NAND flash, CPUs and GPUs. With demand increasing, prices are also going to increase.
SUMCO estimates that global wafer demands will rise to 6.6 million units a month by 2020. Given that the manufacturers can only deliver so much, demand will continue to outstrip supply, leading to price hikes.