Samsung to Raise Advanced Foundry Prices by Up to 15%

Samsung has raised prices for new orders using its advanced foundry processes—4nm, 5nm, and 8nm—effective July 2026. According to a report by Luke James of Tom’s Hardware, the price hike for Chinese customers is as high as 15%.

Price Adjustment Details and Regional Differences

The price revision is based on information from multiple sources. The wafer unit price for the 4nm process, “SF4,” increased by 10% to 15% compared to June for customers in China and the United States. The increase for customers in Taiwan was comparatively smaller, ranging from 5% to 10%. For the 5nm process, “SF5,” prices rose by 10% to 15%, while the 8nm node saw an increase of approximately 10%. Samsung has declined to comment on this report.

Production Capacity Constrained by AI Demand

The primary driver of the price increase is the enormous demand for AI chips. Samsung’s 4nm production line at its Pyeongtaek facility has reportedly been operating at 100% utilization since the end of last year. This line not only manufactures logic chips for Qualcomm but also produces base dies for Samsung’s own HBM (High Bandwidth Memory) stacks, creating a competitive situation where external foundry customers and its internal memory division are vying for wafer allocation.

The Situation for Chinese Customers

Chinese chip design firms are restricted from accessing advanced chip manufacturing tools due to U.S. export regulations. As a result, they are left with few alternatives and must accept Samsung’s significant price hikes. In fact, a previous Financial Times report indicated that Samsung’s chip exports to China surged by 54% between 2023 and 2024, including a contract to supply logic dies for Baidu’s “Kunlun” chips for over three years. Orders from China have already exceeded the supply capacity available after allocating wafers for U.S. customers and Samsung’s own needs.

Competitive Dynamics with TSMC

The market leader TSMC’s movements also influence Samsung’s pricing strategy. According to data from Counterpoint Research, Samsung’s share of global foundry revenue stood at 7% in the first quarter of 2026, while TSMC captured over 70%. However, this market share gap ironically provides Samsung with room for price adjustments. TSMC’s advanced capacity is “booked out” due to AI orders, and the company notified customers in January 2026 of a 5% to 10% price increase across all nodes below 5nm. Reports indicate further price hikes of approximately 25% for some services in 2027. Samsung is implementing its price increase below the level set by TSMC, thereby maintaining competitiveness.

Expectations Toward Breaking Even

Samsung’s foundry division has been operating at a loss since 2022. Lee Min-hee, an analyst at BNK Investment & Securities, told Reuters that if the current price increases continue, “the foundry business could possibly turn profitable as early as next year.” The customer base supporting this outlook has expanded over the past year, reportedly including contracts such as a $16.5 billion (approximately 2.4 trillion yen) deal with Tesla.

Editorial Opinion

Short-Term Impact This price hike has effectively filled the price gap created by TSMC’s prior price increase announcement. For AI chip developers, sourcing options are gradually shifting from over-reliance on TSMC to exploring alternative channels like Samsung. Over the next 3-6 months, the extent to which the price differential between TSMC and Samsung triggers a shift in orders will be the key short-term focus of the foundry market.

Long-Term Perspective Geopolitical risks in the semiconductor supply chain are vividly reflected in the structure of this price increase. Structural factors in the U.S.-China rivalry are causing foundry pricing to depend not just on “technological capability” but also on “geopolitical accessibility.” Viewed over a 1-to-3-year span, this structure is likely to solidify, and foundry prices will come to reflect a geopolitical risk premium even more than the progression of technology roadmaps.

Question from the Editorial Team Samsung’s path to profitability hinges on how it resolves the internal conflict of competing with its own memory division for wafer supply. Balancing price competitiveness for external customers with the growth strategy of in-house HBM production presents a difficult equilibrium challenge.

References

• ” Samsung raises advanced foundry prices by up to 15% as AI demand fills its 4nm lines, report claims — Chinese customers accepting the largest hikes ”, by Luke James — Tom’s Hardware, 2026-08-19T16:15:53.000Z (ARR)
• Source URL: https://www.tomshardware.com/tech-industry/samsung-raises-advanced-foundry-prices-by-up-to-15-percent-as-ai-demand-fills-its-4nm-lines