Cost of gold could push up chip prices

The rocketing price of gold could see chip packagers passing on costs to end users according to a report.

Digitimes is saying that at least one chip packager, Advanced Semiconductor Engineering, has started to raise its quoted prices because of the movement in the gold market, and that another, Silicon Precision Industries, will soon follow suit.

Chip makers are apparently rapidly moving away from gold towards copper wire processes, but not rapidly enough to outride the wave of increases in the price of gold, which reached an all-time high of $1,250 an ounce on May 14th.

Master economist Gordon Brown started selling off 60 per cent of Britain's reserves of the metal when it was fetching $282 an ounce. On the other hand both Cameron and Glegg had spoons wrought of the yellow stuff sticking out of their gobs at birth.