Samsung is raising foundry prices as AI demand tightens advanced chipmaking capacity, with some new orders reportedly costing as much as 15% more.
The South Korean company raised prices in July for new orders using its 4-nanometer SF4 process, according to Reuters, citing two people familiar with the matter. Prices for customers in China and the US rose 10% to 15% from the previous month, while Taiwanese customers faced increases of 5% to 10%.
The company also raised prices for its 5-nanometer SF5 wafers by 10% to 15%, while 8-nanometer production became nearly 10% more expensive, Reuters reported.
The increases come as artificial intelligence demand consumes much of the advanced manufacturing capacity at Taiwan Semiconductor Manufacturing Co., the world’s dominant contract chipmaker. Counterpoint Research estimates TSMC held more than 70% of global foundry revenue in the first quarter of 2026, compared with 7% for Samsung.
Chinese customers appear particularly willing to absorb Samsung’s higher prices. Reuters reported that demand from Chinese chip companies is strong enough to exceed what Samsung can currently accommodate.
US restrictions on advanced chipmaking equipment have constrained China’s ability to expand leading-edge production at home, increasing demand for outside foundries. However, separate U.S. controls also limit the advanced chips overseas manufacturers can produce for Chinese customers.
Samsung also has competing demands for its manufacturing capacity. Its Pyeongtaek SF4 line in South Korea has reportedly operated at full capacity since late 2025, producing logic chips for customers such as Qualcomm as well as base dies used in Samsung’s high-bandwidth memory products.
A potential profit turning point
The pricing shift is significant because Samsung’s foundry business has been losing money since 2022, according to industry estimates, even as its memory business has benefited from booming AI-related demand.
Lee Min-hee, an analyst at BNK Investment & Securities, told Reuters, “If Samsung raises prices from here, its foundry business could potentially become profitable as early as next year, earlier than previously expected.”
Samsung has also expanded its manufacturing relationships with major technology companies. Tesla and Apple announced Samsung manufacturing arrangements last year, while Samsung and Broadcom expanded their memory and foundry collaboration in July. Nvidia CEO Jensen Huang said in March that Samsung would help manufacture the Groq 3 language processing unit, an AI inference chip. Google is also reportedly discussing SF4 production with Samsung.
Samsung’s newfound pricing power represents a situational windfall rather than a decisive technological upset. By raising rates just underneath TSMC’s rising price umbrella, Samsung is monetizing the industry’s manufacturing deficit. For hardware developers, higher foundry prices could put additional upward pressure on AI hardware costs, particularly as chip designers compete for advanced manufacturing capacity.
However, relying on spillover demand carries distinct risks for Samsung. If TSMC expands capacity or AI infrastructure spending cools, some fabless designers could return more production to their preferred foundry, although switching manufacturers can require additional engineering, validation, and expense. Samsung’s longer-term position will depend partly on whether its next-generation 2-nanometer yields can compete.