Samsung, SK Hynix Push for PCB Substrate Price Cuts in H2

Samsung Electronics and SK Hynix are leading a push to lower prices for PCB substrates in the second half of 2024. This shift matters because it could reduce manufacturing costs for the very chips that power your devices. The two giants are negotiating directly with upstream suppliers to reverse earlier price hikes. Buyers now hold the leverage in these B2B discussions.

Semiconductor giants negotiate with suppliers to offset earlier raw material cost increases

The companies are targeting specific price reductions for substrate materials used in semiconductor packaging. Early this year, Samsung and SK Hynix raised these prices by 3 to 4 percent. That initial increase was a direct response to soaring costs for gold and copper. The current negotiations aim to cancel or significantly reduce those added costs.

Raw material prices for gold and copper have stabilized since the first quarter. This market shift has changed the balance of power in supply chain negotiations. KPCA Secretary-General An Youngwoo confirmed that multiple substrate manufacturers have received requests to cut H2 supply prices. The industry is watching to see if these requests result in actual price drops.

If price cuts are implemented, they will likely completely offset the price increases from the first quarter. This reversal would stabilize component costs for semiconductor producers throughout the rest of the year. Meanwhile, Prismark forecasts the global PCB industry will grow by 12.5 percent in 2026. That growth projects a total market size of $95.8 billion by the end of the decade.

We looked at semiconductor supply chain dynamics earlier while tracking global hardware trends. The current negotiations highlight the volatility of raw material costs in electronics manufacturing. Samsung and SK Hynix are actively managing these costs to maintain competitive pricing. The outcome of these talks will influence component availability and pricing for hardware makers.