Samsung raises chipmaking prices up to 15%

Samsung Electronics has raised prices for some advanced contract chipmaking services by up to 15% for new orders, as demand for AI chips tightens capacity in a market long dominated by TSMC. The price increases, effective in July for its 4-nanometre SF4 process, vary by customer: Chinese and U.S. customers saw increases of 10% to 15%, while Taiwanese customers saw 5% to 10%. Prices for its 5-nanometre SF5 process rose 10% to 15%, and older 8-nanometre technology rose nearly 10%. The move marks a turnaround for Samsung's foundry business, which has been a loss maker since 2022. Demand from Chinese customers has been particularly strong, but Samsung must balance serving U.S. customers and reserving capacity for its own chip production. U.S. export curbs on advanced chipmaking equipment to China have increased reliance on overseas foundries. Samsung's SF4 line at Pyeongtaek has been at full capacity since late last year. Analysts suggest the price hikes could make Samsung's foundry business profitable as early as next year. Samsung has also secured deals with Tesla, Apple, Broadcom, and Nvidia, and is in talks with Alphabet Inc..