VIA is going to raise the prices of its chipset with 6 to 10% starting July 1 in order to reflect its rising production costs. In March VIA already increased prices by 5-8%. Wafer production capacities at both TMSC and UMC are expected to further tighten in the third quarter of this year due rising demand from IC design houses. This may cause higher chip production and testing costs.
The price hike will apply on all of VIA's chipsets, especially the entry-level chips like the P4M400A and the KT400A are subject to higher increase. More higher-end chips only receive a moderate rise in price.
With TSMC extending its lead time to 12 weeks, VIA has already placed chipset orders with the foundry giant for deliveries in the third quarter, the sources said.
VIA’s competitor, Silicon Integrated Systems (SiS), has not yet decided to follow suit, stating that it will make a decision in accordance with market conditions
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