Prolonged High Crude Prices Could Pose Risk to Global Chip Makers -- Market Talk

Dow Jones03-11

0106 GMT - Prolonged higher crude prices could pose a near-term risk to global chip makers such as TSMC, Samsung Electronics and SK Hynix, Morningstar's Phelix Lee says in a report. Sustained energy-price increases could raise cost pressures, slow artificial-intelligence infrastructure buildout and weaken demand for AI chips, the analyst notes. AI data centers consume three to five times more power than conventional data centers, he says. Morningstar estimates energy costs for TSMC, Samsung Electronics and SK Hynix accounted for 3%-6% of 2025 revenue and could rise materially if the Iran war persists. It expects those AI chip makers to pass on higher energy costs to customers. (kwanwoo.jun@wsj.com)

(END) Dow Jones Newswires

March 10, 2026 21:06 ET (01:06 GMT)

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