Samsung hikes chipmaking prices by up to 15% on demand spike

Samsung Electronics has increased prices for advanced contract chipmaking services by up to 15% on new orders, according to sources familiar with the matter. The price hike is a response to heightened demand for AI chips, which has strained capacity in the foundry business, traditionally dominated by TSMC. Chinese customers have been particularly affected by the steepest price increases, highlighting how US restrictions on exports of advanced chipmaking equipment to China have increased reliance on overseas foundries for local firms.

Samsung's foundry division, previously a loss-maker since 2022, has turned a profit due to soaring memory chip prices used in AI systems. The company raised prices for its 4-nanometre SF4 process in July, with increases ranging from 10% to 15% for Chinese and US customers, while Taiwan-based customers saw 5% to 10% hikes. Samsung's 5-nanometre SF5 process saw a 10% to 15% price increase, and its older 8-nanometre technology rose by nearly 10%.

The company expects advanced processes to contribute over half of foundry revenue this year, with AI and high-performance computing applications accounting for more than 30%, up from 15% to 20% in late 2025. As TSMC faces capacity constraints and raises prices, Samsung's increased leverage allows it to raise prices as well, potentially making its foundry business profitable as early as the next year.