Samsung Raises Advanced Foundry Prices Amid AI Demand

Samsung has raised prices for its advanced foundry processes, with customers in China and the US seeing the largest hikes. According to a report by Reuters, citing two people familiar with the matter, Samsung has increased prices by up to 15% for its 4nm, 5nm, and 8nm foundry processes.

The price increases come as demand for AI chips fills Samsung's 4nm lines, with the Pyeongtaek SF4 line reportedly running at full capacity since late last year. Chinese chip designers, who have been cut off from advanced chipmaking tools by US export controls, are accepting the largest hikes.

The price increases vary by region, with customers in China and the US seeing quotes for the 4nm SF4 process climb 10% to 15% from June. Customers in Taiwan saw smaller increases of 5% to 10%. Wafers on the 5nm SF5 process rose 10% to 15%, and the 8nm node went up by close to 10%.

Samsung's foundry division has been loss-making since 2022, but analysts believe that if the company continues to raise prices, its foundry business could potentially become profitable as early as next year. The customer list backing this forecast has grown over the past year, spanning major companies such as Tesla, Apple, Broadcom, and Nvidia.

The price increases come as TSMC, the market leader in foundry services, has also raised prices for its sub-5nm nodes. TSMC notified customers of 5% to 10% increases starting in January, with some services reportedly rising around 25% in 2027. Samsung is raising prices beneath this umbrella and still landing below where TSMC's quotes are headed.

The following table shows the price increases for Samsung's foundry processes:

| Process | Price Increase (China and US) | Price Increase (Taiwan) | | --- | --- | --- | | 4nm SF4 | 10% to 15% | 5% to 10% | | 5nm SF5 | 10% to 15% | - | | 8nm | close to 10% | - |

The move by Samsung to raise prices comes as the demand for AI chips continues to fill its 4nm lines. The company's 4nm line at Pyeongtaek has reportedly been running at full capacity since late last year, and Chinese chip designers are accepting the largest hikes.

The price increases by Samsung are seen as a response to the growing demand for AI chips, which is filling its 4nm lines. The company's foundry division has been loss-making since 2022, but analysts believe that if the company continues to raise prices, its foundry business could potentially become profitable as early as next year.