Samsung raises chipmaking prices up to 15% as AI demand tightens capacity

Samsung Electronics has raised prices for some advanced contract chipmaking services by up to 15% for new orders, as surging demand for AI chips tightens foundry capacity across the industry, Reuters reported on Wednesday.reuters

The price increases, applied in July to chips made using Samsung's 4-nanometer process known as SF4, hit Chinese and U.S. customers hardest, with hikes of 10% to 15% from the previous month. Taiwanese customers saw increases of 5% to 10%, according to sources cited by Reuters.reuters

Chinese Customers Bear the Brunt

Chinese customers are among those accepting the steepest price increases, underscoring how U.S. curbs on exports of advanced chipmaking equipment to China have deepened local firms' reliance on overseas foundries. Samsung has been unable to meet all Chinese orders because it must also serve U.S. customers and reserve capacity for its own chip production, the sources said.ndtvprofit+1

Prices for wafers produced using Samsung's 5-nanometer SF5 process rose by 10% to 15%, while those for its older 8-nanometer technology rose by nearly 10%.reuters

A Turning Point for Samsung's Foundry Business

The price hikes mark a turnaround for Samsung's foundry division, which has been a loss-maker since 2022 according to industry estimates. Samsung produced 7% of global foundry revenue in the first quarter of 2026, compared with more than 70% for Taiwan Semiconductor Manufacturing Co ↘ 4.07%.reuters

However, with TSMC's ↘ 4.07% leading-edge capacity largely booked up by AI chip demand, Samsung now has greater leverage. "As TSMC faces tight capacity and raises prices, customers are shifting to rivals such as Samsung and Intel ↘ 6.58%, prompting Samsung to raise its prices as well," said Lee Min-hee, an analyst at BNK Investment & Securities.reuters

Samsung's SF4 production line at its Pyeongtaek plant has been running at full capacity since late last year, producing logic chips for customers including Qualcomm ↘ 1.23% as well as base dies used in Samsung's own high-bandwidth memory chips. Google Alphabet Inc. ↘ 0.05% is also in talks with Samsung to manufacture chips using SF4, according to one of the sources.reuters

Lee noted that if Samsung raises prices further, "its foundry business could potentially become profitable as early as next year, earlier than previously expected".reuters