Samsung Ramps Up Chip Prices Amid AI Demand Surge

Samsung Electronics has implemented price increases of up to 15% for select advanced contract chipmaking services for new orders, according to sources familiar with the matter. This adjustment is a direct response to the escalating demand for artificial intelligence chips, which has strained manufacturing capacity. The foundry business, previously incurring losses since 2022, is experiencing a notable turnaround.

Price hikes for the 4-nanometre SF4 process have ranged from 10% to 15% for customers in the U.S. and China, and 5% to 10% for those in Taiwan. Its 5-nanometre SF5 process saw a 10% to 15% increase, while older 8-nanometre technology increased by nearly 10%. These adjustments are occurring as Samsung aims to increase the contribution of advanced processes to over half of its foundry revenue this year.

The company's foundry revenue is expected to grow by over double-digit percentage points in the second half of 2026 compared to the previous year. This growth is supported by increased factory utilization, improved production yields, and firmer pricing. Samsung anticipates its foundry division could return to profitability in the near future, potentially as early as next year.

As Taiwan Semiconductor Manufacturing Co (TSMC) faces capacity constraints, clients are exploring alternatives like Samsung and Intel, granting Samsung greater leverage to raise prices. Major tech firms including Qualcomm, Tesla, Apple, Broadcom, and Nvidia have existing or potential chip manufacturing deals with Samsung, reflecting growing confidence in its capabilities.