Samsung raises chipmaking prices by up to 15% amid AI demand surge

Aug 19, 2026

Samsung Electronics has raised its contract chipmaking prices by up to 15% for new orders, targeting its advanced 4nm, 5nm, and 8nm nodes. Driven by an explosive surge in AI chip demand and severe capacity constraints at market leader TSMC, the price hikes mark a major turnaround for Samsung's foundry business, which has suffered losses since 2022. Chinese firms, restricted by US export curbs on chipmaking equipment, are accepting the steepest increases as they rely heavily on overseas foundries.

Samsung foundry price increases

▪Samsung Electronics increased prices for its 4-nanometer (SF4) and 5-nanometer (SF5) processes by 10% to 15% for customers in China and the United States.
▪Samsung Electronics raised prices for its older 8-nanometer chip manufacturing process by nearly 10% in July 2026.
▪Samsung Electronics increased chipmaking prices for customers in Taiwan by 5% to 10% in July 2026.
▪Samsung Electronics raised contract chipmaking prices by up to 15% for new orders starting in July 2026.

AI chip demand surge

▪Samsung Electronics has run its 4-nanometer production line at its Pyeongtaek, South Korea, plant at full capacity since late 2025.
▪A massive surge in demand for artificial intelligence chips has tightened global contract chipmaking capacity, leaving Samsung Electronics unable to fill all incoming orders.

Chinese customer reliance

▪Samsung Electronics must balance its foundry capacity between serving United States customers, meeting strong Chinese demand, and reserving capacity for its own internal chip production.
▪Chinese customers are among those accepting the steepest price increases of 10% to 15% from Samsung Electronics.

Samsung foundry profitability turnaround

▪Samsung Electronics' foundry division has operated at a loss since 2022, according to industry estimates.
▪Samsung Electronics' foundry division recently achieved monthly profitability for the first time in three years, aided by higher factory utilization, better yields, and firmer pricing.

TSMC capacity constraints

▪Taiwan Semiconductor Manufacturing Co. has reportedly raised its own manufacturing prices by 5% to 10% across its 3-nanometer, 5-nanometer, and 7-nanometer processes.
▪Tight capacity at Taiwan Semiconductor Manufacturing Co. has forced chip designers to shift orders to rivals like Samsung Electronics and Intel.
▪Taiwan Semiconductor Manufacturing Co. dominated the contract chipmaking market with over 70% of global foundry revenue in the first quarter of 2026, while Samsung Electronics held 7%.