Samsung Raises Advanced Chipmaking Prices by 15% Due to AI Demand

Samsung Electronics has raised prices for new orders across its advanced contract chipmaking services by as much as 15 percent, a move driven by a surge in demand for artificial intelligence chips that has tightened global foundry capacity. The price increases, implemented in July, affect the company's 4-nanometer, 5-nanometer, and 8-nanometer manufacturing processes and come as Samsung's foundry division seeks to capitalize on a supply-constrained market long dominated by Taiwan Semiconductor Manufacturing Company.

According to sources familiar with the matter, customers in China and the United States saw the steepest increases for the 4-nanometer SF4 process, with prices climbing 10 to 15 percent from June. Customers in Taiwan, home to rival TSMC, faced smaller hikes of 5 to 10 percent. Prices for wafers produced on the 5-nanometer SF5 process rose by 10 to 15 percent, while the older 8-nanometer node saw an increase of nearly 10 percent. Samsung declined to comment on the specific pricing details.

The price hikes are a direct response to overwhelming demand, particularly from Chinese chip designers. U.S. export controls have restricted China's access to advanced semiconductor...