Taiwan energy price hike set to hit chip makers
Taiwan is increasing electricity prices by an average of 8.4 percent for industrial customers such as chipmakers, a hike that is likely to be passed on to electronics customers.
The price rise has been skewed against industrial customers to spare domestic and small business users.
The Taiwan Power Company has been hit by rising costs of fuel as it has to import coal and gas to generate electricity. At the same time there is record demand due to the use of air conditioning because of high temperatures.
As Taiwan is a hub of global chip manufacturing the increase could have a major effect on chip prices and, in turn, contribute to a predicted end to a cycle of market growth.
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