# Manufacturing Costs

The Middle East Tax: Sumitomo Bakelite’s Price Hike Signals Rising Costs for the Global Chip Supply Chain

Sumitomo Bakelite will raise prices for its semiconductor epoxy molding compounds by 10-20% starting June 2026, citing Middle East instability and rising logistical costs. The move underscores the vulnerability of the semiconductor back-end supply chain to geopolitical and energy market fluctuations.