Nikkei Asia reported on July 14 that Intel has informed its customers that it will raise the prices of most of its microprocessor and peripheral chip products in the second half of 2022. Intel said the price hike is necessary due to soaring production and material costs.

Three industry executives said Intel plans to raise prices this fall for its flagship products such as server and PC processors, which dominate the market, as well as a range of other products including WiFi and other connectivity chips. Sources close to the matter said that the specific price increase has not been finalized, but depending on the product, the increase could grow from a minimum of single digits to more than 10 percent and 20 percent in some cases.

The report commented on this, Intel's move comes at a time when inflation is soaring in the United States and around the world. The U.S. reported that consumer prices rose 9.1 percent in June, a 40-year high. But while rising commodity, material, transportation and labor costs have all put pressure on the chip industry, inflation has also overshadowed the outlook for consumer spending, making Intel's pricing decision particularly worrisome.

In addition, many of Intel's major PC customers, such as Acer and Asus, have publicly warned of the recession. Acer CEO Jason Chen made clear Wednesday that his company is no longer facing a chip shortage, and "some chip supplier CEOs have even called me recently to buy more chips from them," he said, adding that "things have changed. "