Samsung Hikes Chip Prices Amid AI Demand Surge
Samsung Electronics has increased prices for its advanced chipmaking services by up to 15% for new orders, driven by surging demand from AI applications. The price hikes apply to customers in the US and China who use Samsung's 4-nanometer SF4 process and 5-nanometer wafers.
The move is a response to strong demand from China, which has pushed Samsung to operate at full capacity since last year. The company cannot fill every order due to reserved capacity for US customers and its own HBM base dies.
Samsung expects AI and high-performance computing applications to account for more than 30% of foundry revenue this year, up from 15-20% in late 2025. This marks a significant reversal for the company's foundry unit, which has reportedly lost money since 2022.
The capacity crunch at Taiwan Semiconductor Manufacturing Co. (TSMC) is turning Samsung into an increasingly important second source. Qualcomm uses its SF4 line, while Samsung manufactures Nvidia's new AI inference processor on its 4nm process. Tesla signed a $16.5 billion chipmaking deal with Samsung last year, and Google's parent Alphabet Inc. is reportedly in talks to use SF4.