Samsung Electronics is raising prices for some advanced contract chipmaking services by as much as 15%, according to people familiar with the matter, as surging artificial intelligence demand puts pressure on global semiconductor capacity.
The reported increases affect Samsung’s 4-nanometre SF4, 5-nanometre SF5 and 8-nanometre processes. SF4 customers in China and the U.S. are facing increases of about 10% to 15%, while customers in Taiwan are seeing increases of roughly 5% to 10%. SF5 prices have also reportedly increased by 10% to 15%.
The move highlights a major shift in Samsung’s foundry business. The company has struggled to compete with Taiwan Semiconductor Manufacturing Co. (TSMC), but strong demand for AI and high-performance computing chips is giving Samsung greater pricing power.
Samsung’s foundry business accounted for about 7% of global foundry revenue in the first quarter of 2026, compared with more than 70% for TSMC, according to Counterpoint data cited by Reuters. Samsung’s SF4 production line at its Pyeongtaek plant has reportedly been operating at full capacity since late 2025.
Samsung said in its Q2 2026 results that its foundry business improved significantly, supported by demand for HBM base dies and strong orders from U.S. customers. The company said it expects rising demand from U.S. and Chinese customers to support double-digit foundry revenue growth in the second half of 2026.
Samsung also highlighted its expanding AI semiconductor partnerships. In July, Samsung and Broadcom announced a strategic collaboration covering memory, foundry and advanced packaging, with the companies expecting cooperation worth more than $200 billion through 2030.
Samsung has also emphasized its ability to provide a combined memory, logic, foundry and advanced packaging solution for AI infrastructure.
The reported price increases could therefore become an important turning point for Samsung’s foundry business. If AI demand remains strong and factory utilization stays high, Samsung may have an opportunity to improve profitability while strengthening its position as a major alternative to TSMC.
