Samsung Electronics has raised prices for some advanced contract chipmaking services by as much as 15%, reflecting a sharp increase in demand for artificial intelligence chips and tightening production capacity across the industry.
Two people familiar with the matter said the increases apply to new orders. Demand from Chinese customers has been especially strong, but Samsung cannot fulfil every request because it must also serve US clients and reserve capacity for its own semiconductor products. Chinese buyers are accepting some of the steepest increases, highlighting how US restrictions on exports of advanced chipmaking equipment have made Chinese companies more dependent on overseas foundries.
In July, Samsung increased prices for chips produced with its four-nanometre SF4 process. Customers in China and the United States faced rises of 10% to 15% from the previous month, while Taiwanese customers saw increases of 5% to 10%. Prices for wafers made using Samsung’s five-nanometre SF5 technology also climbed 10% to 15%, and prices for its older eight-nanometre process rose by almost 10%.
The changes could mark an important recovery for Samsung’s foundry division, which industry estimates suggest has been unprofitable since 2022. Although Samsung has benefited from booming sales and prices for AI-related memory chips, its contract manufacturing operation remains far behind market leader Taiwan Semiconductor Manufacturing Company.
Counterpoint data showed Samsung captured about 7% of global foundry revenue in the first quarter of 2026, compared with more than 70% for TSMC. However, capacity constraints at TSMC are encouraging customers to consider alternatives, including Samsung and Intel. Samsung’s SF4 production line in Pyeongtaek is reportedly operating at full capacity. Stronger pricing and utilization could help the foundry business return to profitability as early as next year, while recent partnerships with major technology companies may strengthen its longer-term competitive position in an increasingly supply-constrained global market.
Source: Reuters