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

Samsung Electronics has recently raised prices for advanced contract chipmaking services by up to 15%, according to two sources familiar with the matter. This comes as demand for AI chips tightens production capacity, a sector historically dominated by Taiwan Semiconductor Manufacturing Company (TSMC). Chinese customers have shown particular strong demand, but Samsung has been unable to fulfill all orders due to its obligation to serve U.S. customers and reserve capacity for its own chip production.

The price hikes are particularly steep for Chinese customers, underscoring the impact of U.S. restrictions on the export of advanced chipmaking equipment to China. These restrictions have increased reliance on overseas foundries among local firms. The price increases signal a shift for Samsung's foundry business, which has been operating at a loss since 2022. The company has struggled to keep pace with TSMC, despite Samsung's record profits driven by soaring memory chip prices used in AI systems.

In July, Samsung raised prices for chips using its 4-nanometre (SF4) process, increasing them between 10% and 15% for customers in China and the U.S., while those in Taiwan, home to TSMC, saw increases of 5% to 10%. Prices for wafers produced by its 5-nanometre (SF5) process rose by 10% to 15%, and those for its older 8-nanometre (8-nm) technology saw a nearly 10% increase.

Samsung currently accounts for 7% of global foundry revenue in Q1 2026, compared to TSMC's more than 70%, according to research firm Counterpoint. However, high demand for AI chips has saturated TSMC's leading-edge capacity, giving Samsung more leverage to raise prices. With TSMC's capacity stretched, Samsung expects advanced processes to make up more than half of its foundry revenue this year, while AI and high-performance-computing applications would account for more than 30%, up from 15% to 20% in late 2025.

TSMC's limited capacity and price hikes have prompted customers to shift to Samsung and Intel, prompting Samsung to raise its prices as well. Analyst Lee Min-hee from BNK Investment & Securities suggests that if Samsung continues raising prices, its foundry business could become profitable as early as next year, sooner than previously expected.

Samsung's SF4 production line at its Pyeongtaek, South Korea, plant has been operating at full capacity since late last year, producing logic chips for customers such as Qualcomm and base dies for Samsung's own high-bandwidth memory (HBM) chips. The company expects the foundry unit to return to profit in the near future, driven by higher factory utilization, better production yields, and firmer pricing, along with rising sales to major U.S. and Chinese customers and demand for HBM base dies.