Samsung Electronics has reportedly increased prices for some of its advanced contract chipmaking services by as much as 15% for new orders, as surging demand for AI chips puts pressure on semiconductor manufacturing capacity. The price increases are particularly significant for Samsung’s 4-nanometre and 5-nanometre processes, according to sources cited by Reuters.
The move comes as leading foundry rival Taiwan Semiconductor Manufacturing Company (TSMC) faces increasingly tight capacity for advanced semiconductor production, giving Samsung greater pricing leverage in the foundry market.
AI demand drives higher chipmaking prices
According to the market reports, Samsung raised prices in July for chips manufactured using its 4-nanometre SF4 process. Customers in China and the United States reportedly faced price increases of between 10% and 15% compared with the previous month, while customers in Taiwan saw increases of around 5% to 10%.
Samsung has also reportedly increased prices for wafers produced using its 5-nanometre SF5 process by 10% to 15%. Prices for its older 8-nanometre technology increased by nearly 10%.
Samsung has not commented on the reported price changes, saying it does not disclose operational details.
Chinese customers face stronger pricing pressure
Demand from Chinese customers has reportedly been particularly strong. However, Samsung is unable to accept all orders because it needs to maintain supplies for U.S. customers and reserve manufacturing capacity for its own semiconductor production.
The situation has also been influenced by U.S. restrictions on exports of advanced semiconductor manufacturing equipment to China. These restrictions have increased Chinese companies’ dependence on overseas foundries for advanced chip production.
As AI adoption accelerates globally, demand for advanced processors and related semiconductor technologies has intensified, putting additional pressure on available manufacturing capacity.
Samsung looks to narrow the gap with TSMC
Samsung remains the second-largest major player in the global foundry market but continues to trail TSMC by a wide margin. Counterpoint data cited by Reuters shows that Samsung accounted for about 7% of global foundry revenue in the first quarter of 2026, compared with more than 70% for TSMC.
However, tight capacity at TSMC is creating an opportunity for Samsung. Customers looking for alternative advanced manufacturing capacity are increasingly considering Samsung and other foundry providers.
Samsung expects advanced manufacturing processes to contribute more than half of its foundry revenue this year. AI and high-performance computing applications are also expected to account for more than 30% of foundry revenue, compared with an estimated 15% to 20% in late 2025.
Pyeongtaek 4nm line operating at full capacity
Samsung’s SF4 production line at its Pyeongtaek facility in South Korea has reportedly been operating at full capacity since late 2025.
The facility manufactures logic chips for customers including Qualcomm, while also producing base dies used in Samsung’s multi-layer high-bandwidth memory products.
The full utilisation of the SF4 line highlights the growing demand for advanced semiconductor manufacturing as AI infrastructure investment continues to expand.
Potential turnaround for Samsung’s foundry business
The reported price increases could mark an important shift for Samsung’s foundry business, which has struggled financially in recent years and has remained loss-making since 2022, according to industry estimates.
Samsung has previously indicated that it expects the foundry business to return to profitability as factory utilisation improves, manufacturing yields increase and pricing becomes stronger.
Analysts believe the latest pricing environment could accelerate that recovery. Lee Min-hee, an analyst at BNK Investment & Securities, said stronger demand and capacity constraints at TSMC could provide Samsung with an opportunity to improve the profitability of its foundry operations.
Growing AI chip customer base
Samsung has also been strengthening its position in AI and advanced semiconductor manufacturing by expanding its customer base.
The company has secured chip manufacturing relationships involving major technology companies including Tesla, Apple and Broadcom. Samsung also announced an AI chip production partnership with Broadcom in July, while Nvidia CEO Jensen Huang previously indicated that Samsung would manufacture an AI inference processor using its 4-nanometre technology.
Google is also reportedly in discussions with Samsung over chip manufacturing using the SF4 process.
AI boom reshapes foundry competition
The latest price increase reflects a broader shift in the semiconductor industry, where AI infrastructure demand is putting unprecedented pressure on advanced manufacturing capacity.
For Samsung, the situation provides an opportunity to improve pricing power, increase factory utilisation and strengthen its position against TSMC. At the same time, higher manufacturing costs could add pressure to companies developing AI processors and other advanced chips.
If demand remains strong and Samsung continues to improve production yields, the company’s foundry business could move closer to profitability as early as next year, according to analyst estimates.
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