Huo Xing Finance reports, according to Reuters citing sources, Samsung Electronics has raised prices for select advanced foundry orders by up to 15% due to surging demand for AI chips and tight capacity. The company has long trailed TSMC in the foundry sector. Demand from Chinese clients has been especially strong, but Samsung must prioritize U.S. customers and reserve capacity for its own chip production, preventing it from accepting all orders. Due to U.S. export restrictions on advanced chip equipment to China, Chinese firms are increasingly reliant on overseas foundries, with some Chinese clients accepting the highest price increases. Sources say Samsung raised prices for its 4nm (SF4) process in July, with increases of 10% to 15% for Chinese and U.S. customers and 5% to 10% for Taiwanese clients; 5nm (SF5) wafer prices rose by 10% to 15%, while older 8nm process prices increased by nearly 10%. Samsung’s SF4 production line at the Pyeongtaek facility has been operating at full capacity since late last year, producing logic chips for clients such as Qualcomm and supplying base dies for Samsung’s own HBM. Analysts note that after TSMC’s advanced capacity was fully booked, customers turned to Samsung and Intel, giving Samsung room to raise prices. Samsung’s foundry business has posted continuous losses since 2022, but the company expects to return to profitability quickly, driven by higher utilization rates, improved yields, and stronger pricing. Foundry revenue in the second half of the year is projected to grow by double digits year-over-year, with advanced processes accounting for over half of revenue and AI and high-performance computing applications making up more than 30%. Tesla, Apple, Broadcom, and NVIDIA have already partnered with Samsung, while Google is in discussions to use the SF4 process.
Samsung Raises Prices for Advanced Chip Manufacturing by Up to 15% Amid Surge in AI Demand
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Summary
Samsung Electronics raised prices for advanced chip manufacturing by up to 15% in July, with U.S. and Chinese clients experiencing the largest increases. On-chain data indicates strong demand for AI chips, pushing production capacity to its limits. The Pyeongtaek SF4 line is operating at full capacity, supplying Qualcomm and Samsung’s HBM. With TSMC fully booked, clients are shifting to Samsung and Intel. Altcoins to watch may benefit from improved foundry pricing and utilization. Samsung’s foundry business is expected to become profitable, with AI and HPC applications now accounting for over 30% of output.
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