Samsung and SK Hynix reportedly lead pressure on substrate manufacturers to cut prices

According to the Korea Printed Circuit Board & Semiconductor Packaging Industry Association (KPCA), Samsung and SK Hynix, eyeing the frequent price hikes by upstream substrate manufacturers due to market supply shortages, are planning to demand price cuts from these suppliers. In the latest price negotiations with substrate vendors, they have requested lower quotations, intending to retract the average price increase of approximately 3% to 4% proposed for the first quarter of this year.

It is understood that the reason Samsung and SK Hynix are advocating for price reductions is that earlier this year, due to rising costs of raw materials such as gold and copper, they accepted a price increase of about 3% to 4% from substrate manufacturers. However, given that recent fluctuations in raw material prices have eased and the factors driving price hikes have disappeared, they believe that quotations for the second half of the year should also return to pre-increase levels. (Jin Shi)