Samsung Electronics has increased prices for its advanced contract chipmaking services by as much as 15% for new orders. According to two people familiar with the matter, the price adjustments are driven by a spike in demand for artificial intelligence (AI) chips, which has tightened global manufacturing capacity. Samsung declined to comment, citing a policy of not disclosing operational details.
The move comes as the global foundry market—where companies manufacture chips designed by other firms—is seeing high utilization. Taiwan Semiconductor Manufacturing Co (TSMC), which controlled more than 70% of global foundry revenue in the first quarter of 2026, has faced capacity constraints and price increases of its own. Samsung, which held a 7% market share in the same period, has seen its SF4 production line at its Pyeongtaek plant running at full capacity since late last year.
Specific price hikes varied by region and technology. In July, customers in China and the U.S. using Samsung’s 4-nanometer (SF4) process saw increases of 10% to 15% compared to the previous month. Customers in Taiwan saw smaller increases of 5% to 10%. Additionally, prices for the 5-nanometer SF5 process rose by 10% to 15%, while older 8-nanometer technology prices increased by nearly 10%. The sources noted that U.S. export curbs on advanced equipment to China have increased the reliance of Chinese firms on overseas foundries like Samsung.
The scale of the shift is reflected in Samsung's changing revenue mix. The company expects advanced manufacturing processes to account for more than 50% of its foundry revenue this year. Furthermore, applications for AI and high-performance computing are projected to make up more than 30% of that revenue, nearly doubling from the 15% to 20% range recorded in late 2025. For Samsung’s foundry division, which has been reported as a loss-maker since 2022, these price adjustments could accelerate its return to profitability, with some analysts suggesting a turnaround as early as next year.
The knock-on effects extend to the broader semiconductor supply chain, as tight capacity at industry leader TSMC pushes more customers toward Samsung and Intel. This shift gives secondary foundries more leverage to set higher prices. As Samsung utilizes its capacity to support both external customers and its own high-bandwidth memory (HBM) chip production, the availability of advanced manufacturing slots remains limited. Looking ahead, Samsung has stated it expects foundry revenue to grow by more than double-digit percentage points in the second half of 2026 compared to the previous year, driven by higher utilization and firmer pricing.