Samsung hikes chipmaking prices by up to 15% on demand spike, sources say

Demand from Chinese customers has been particularly strong, but Samsung has been unable to meet all orders because it must serve U.S. customers and reserve part of its capacity to support its own chip production, said the sources, who spoke on the condition of anonymity because they are discussing sensitive commercial matters.

Chinese customers are among those accepting the steepest price increase, one of the sources said, underscoring how U.S. curbs on exports of advanced chipmaking equipment to China have increased local firms' reliance on overseas foundries.

The price hikes mark a turnaround for Samsung's foundry business, which has been a loss ⁠maker since 2022, according to industry estimates. The division has struggled to narrow the gap with Taiwan Semiconductor Manufacturing Co, even as Samsung reported record profits, driven by soaring prices for memory chips used in AI systems.

Samsung raised prices in July for chips made using its 4-nanometre process, known as SF4, the sources said.

Prices for SF4 customers in China and the U.S. were increased 10% to 15% from the previous month, while customers in Taiwan, home to TSMC, saw increases of 5% to 10%, according to one of the sources.

Prices for wafers produced by its 5-nanometre SF5 process rose by 10% to 15%, while those for its older 8-nanometre technology rose by nearly 10%, according to the source.

Samsung declined to comment as the company does not provide details on operational matters.