Samsung raises chipmaking prices up to 15% as demand spikes, sources say

• Samsung increased July prices by 10-15% for Chinese and U.S. customers using its 4-nanometer (SF4) process, 5-10% for Taiwan customers, while 5nm and 8nm processes saw similar increases of 10-15% and nearly 10% respectively.
• Samsung holds only 7% of global foundry market share compared to TSMC's 70%+ share, but its SF4 production line at Pyeongtaek has run at full capacity since late 2024, serving clients including Qualcomm, Tesla, Apple, and potentially Google.
• U.S. export curbs on advanced chipmaking equipment to China have increased Chinese firms' reliance on overseas foundries like Samsung, with strong Chinese demand contributing to the capacity constraints enabling price increases.

Summary: Samsung Raises Chipmaking Prices Amid Surging AI Demand

Samsung Electronics has increased prices for advanced contract chipmaking services by up to 15% for new orders, marking a significant turnaround for its struggling foundry business. The price hikes, implemented in July, affect multiple process nodes as AI chip demand tightens available capacity.

Key Price Increases:

• SF4 (4-nanometer): 10-15% for Chinese and U.S. customers; 5-10% for Taiwanese customers
• SF5 (5-nanometer): 10-15% increase
• 8-nanometer: Nearly 10% increase

Market Position and Capacity:

Samsung holds 7% of global foundry revenue in Q1 2026, far behind TSMC's 70%+ market share. However, tight capacity at TSMC has strengthened Samsung's pricing power. Samsung's SF4 production line at its Pyeongtaek plant has operated at full capacity since late last year.

Key Drivers:

• Strong demand from Chinese customers, amplified by U.S. export restrictions on advanced chipmaking equipment to China
• AI chip demand consuming TSMC's leading-edge capacity, driving customers to alternatives
• Improved production yields helping Samsung attract major clients

Business Outlook:

Samsung's foundry division, unprofitable since 2022, expects advanced processes to exceed 50% of foundry revenue this year. AI and high-performance computing applications will comprise over 30% of revenue, up from 15-20% in late 2025. Analysts suggest the unit could achieve profitability as early as next year.

Major Customers:

Confirmed partnerships include Qualcomm, Tesla, Apple, Broadcom, and Nvidia. Google is reportedly in talks for SF4 manufacturing. Samsung also produces base dies for its own high-bandwidth memory (HBM) chips used in AI systems.