Samsung Raises Advanced Chipmaking Prices Amid AI Demand

SEOUL: (News Desk) – Samsung Electronics has increased prices for some advanced contract chipmaking services by as much as 15% for new orders, according to two people familiar with the matter, as surging demand for artificial intelligence chips puts pressure on global foundry capacity.

The sources said demand from Chinese customers has been particularly strong, although Samsung has not been able to accommodate all orders. The South Korean company must also maintain capacity for US customers and reserve production resources for chips used in its own products.

Chinese clients are reportedly facing some of the largest increases. The development highlights how US restrictions on advanced chipmaking equipment have increased Chinese companies’ dependence on overseas semiconductor manufacturers.

The price increases represent a notable shift for Samsung’s foundry operation, which has struggled with losses since 2022, according to industry estimates. Despite Samsung posting record overall profits on the back of strong memory-chip demand from the AI industry, its contract manufacturing business has continued to trail Taiwan Semiconductor Manufacturing Co. (TSMC).

Prices rise across Samsung processes

Samsung raised prices in July for chips manufactured using its 4-nanometre SF4 process, according to the sources.

Prices for SF4 production for customers in China and the United States increased by 10% to 15% compared with the previous month. Customers in Taiwan faced increases of around 5% to 10%, according to one source.

The company also increased prices for wafers produced using its 5-nanometre SF5 process by 10% to 15%, while prices for its older 8-nanometre technology rose by nearly 10%.

Samsung declined to comment, saying it does not disclose details about operational matters.

Tight capacity strengthens Samsung’s position

Samsung accounted for around 7% of global foundry revenue in the first quarter of 2026, compared with more than 70% for TSMC, according to research firm Counterpoint.

However, the rapid expansion of AI chip demand has absorbed much of the available leading-edge manufacturing capacity at TSMC, giving Samsung greater room to improve pricing.

Samsung expects advanced manufacturing processes to generate more than half of its foundry revenue this year. AI and high-performance computing applications are projected to account for more than 30% of that business, up from around 15% to 20% in late 2025.

“As TSMC faces tight capacity and raises prices, customers are shifting to rivals such as Samsung and Intel,” said Lee Min-hee, an analyst at BNK Investment & Securities. She said stronger pricing could help Samsung’s foundry business return to profitability as early as next year.

Samsung expands AI chip customer base

Samsung’s SF4 production line at its Pyeongtaek facility has reportedly been operating at full capacity since late last year, according to a person familiar with the company’s operations.

The facility manufactures logic chips for customers including Qualcomm, as well as base dies used in Samsung’s own high-bandwidth memory (HBM) products.

Samsung said in July that it expected its foundry division to return to profitability in the near term, citing improved factory utilisation, stronger production yields and firmer pricing.

The company also expects sales to major US and Chinese customers, together with demand for HBM base dies, to drive double-digit percentage growth in foundry revenue during the second half of the year compared with the same period last year.

Improved manufacturing yields have further strengthened Samsung’s ability to attract major customers. Tesla and Apple announced chip manufacturing agreements with Samsung last year.

Samsung also disclosed an AI chip production agreement with Broadcom in July, while Nvidia CEO Jensen Huang said in March that Samsung would manufacture its next-generation AI inference processor.

Google is also reportedly in discussions with Samsung over manufacturing chips using the SF4 process, according to one of the sources familiar with the latest price increases. Google did not respond to a request for comment.