Samsung Electronics has increased contract prices for advanced chipmaking services by as much as 15% for new orders, according to sources familiar with the matter.
The increases apply across multiple process nodes, with 4-nanometre (SF4) wafers rising 10% to 15% for customers in China and the U.S., while Taiwanese clients saw hikes of 5% to 10%. Pricing for 5-nanometre (SF5) and older 8-nanometre technologies climbed nearly 10% and 10% respectively. The adjustments follow a broader tightening in foundry capacity driven by surging demand for high-bandwidth memory chips and high-performance computing components used in artificial intelligence applications.
Samsung’s foundry unit accounted for 7% of global foundry revenue in the first quarter of 2026, trailing far behind Taiwan Semiconductor Manufacturing Co. (TSMC), which held more than 70%. Analysts note that TSMC’s own price increases and capacity constraints have pushed customers toward alternative suppliers, including Samsung and Intel, enabling the Korean firm to raise its own rates.
The company expects advanced processes to contribute more than half of its foundry revenue in 2026, with AI and high-performance computing applications representing over 30% of output, up from 15% to 20% in late 2025. Samsung has also secured a production deal with Broadcom for AI chips and anticipates its foundry unit will return to profitability in the near term. Seoul-based analyst Lee Min-hee of BNK Investment & Securities projects that if pricing momentum continues, Samsung’s foundry business could turn profitable as early as 2027, earlier than previously forecast.
Samsung’s Pyeongtaek facility in South Korea, which began full-capacity operations late last year, has been a key driver of its push into AI and HPC segments. Nvidia CEO Jensen Huang confirmed in March that Samsung would manufacture the chipmaker’s new AI inference processor, underscoring the strategic shift toward high-margin, cutting-edge applications.
The pricing move comes amid broader volatility in South Korea’s financial markets, where the KOSPI briefly halted trading after a 5% intraday decline, reflecting investor sensitivity to shifts in global semiconductor dynamics.
