Bloomberg reported Samsung discussed price hikes of up to 20 per cent with chip customers to offset rising costs, a move the news outlet speculated could result in increases in consumer electronics products including smartphones.

The news service stated Samsung had completed fresh pricing negotiations with some customers regarding potential rises of between 15 per cent and 20 per cent. It reported older chip designs are likely to face the highest increases.

Bloomberg placed Samsung as the worlds second-largest contract chip manufacturer behind Taiwan Semiconductor Manufacturing Company (TSMC), indicating a potential widespread impact of any increase in prices. It explained any rises are likely to be implemented in the back half of the year.

Samsung recorded a 39 per cent year-on-year rise in semiconductor revenue in Q1 to KRW26.9 trillion ($21 billion), apparently reaping the benefit of global component shortages.

Rising prices also propelled TSMC to record revenue in the opening quarter, beating even its own expectations.