Samsung stock jumps after foundry price hike signals AI chip crunch

Samsung Electronics shares jumped nearly 9.5% on Thursday in Seoul after reports confirmed the company raised prices on advanced contract chipmaking services by up to 15%, a move that underscored how demand for artificial intelligence hardware has outstripped global manufacturing capacity.

The stock closed at 271,000 won, its largest single-day gain in months, after Reuters reported that Samsung had lifted prices in July across several of its most advanced process nodes.finance.yahoo+1

The Price Increases

According to Reuters, Samsung raised prices for chips made on its 4-nanometer SF4 process by 10% to 15% for customers in China and the United States, while Taiwanese clients saw smaller increases of 5% to 10%. The 5-nanometer SF5 process saw similar 10% to 15% increases, and even the older 8-nanometer node rose by roughly 10%. Samsung declined to comment, citing its policy against discussing operational details.timestabloid+5

The increases took effect in July and apply to new orders. Chinese customers are absorbing the steepest hikes, a dynamic linked to U.S. export controls on advanced chipmaking equipment that have made Chinese firms more dependent on overseas foundries.investing+3

TSMC's Capacity Crunch Creates an Opening

The pricing move reflects a broader industry dynamic: TSMC Taiwan Semiconductor Manufacturing Company ↘ 1.02%, which controls more than 70% of global foundry revenue compared to Samsung's roughly 7%, has effectively sold out its most advanced capacity. TSMC has reportedly pre-sold all its 3-nanometer capacity through 2027 and committed its entire 2026 2-nanometer output to Apple ↘ 1.11%, Nvidia ↘ 0.52%, and AMD Advanced Micro Devices, Inc. ↘ 2.03%.ts2+1

That leaves companies unable to secure a TSMC slot with few alternatives. Samsung, despite trailing on market share, is one of the only foundries capable of producing chips at advanced nodes, giving it genuine leverage for the first time in years.timestabloid

TSMC reported July revenue of NT$467.58 billion, up 44.7% year over year, and guided third-quarter revenue between $44.6 billion and $45.8 billion. Nvidia is set to release results in the coming days, which will further gauge AI infrastructure demand.ts2

A Turning Point for Samsung's Foundry Business

The price increases arrive after Samsung's foundry division posted losses every year since 2022 before contributing to record quarterly operating profit in the second quarter of 2026. Samsung has said it expects continued improvement in the second half, citing rising factory utilization and better yields.timestabloid

The broader memory market is also surging. Counterpoint projects global memory revenue will reach 1,500 trillion won this year, up from roughly 360 trillion won last year. Rising foundry and memory prices flow directly into the cost of building and running AI systems, making this week's increases a leading indicator of where compute costs head next.timestabloid