Samsung Hikes Chipmaking Prices by up to 15% on Demand Spike
The hikes hit SF4, SF5 and 8nm orders as Samsung seeks better pricing from AI-related demand and higher factory utilization.
- Samsung Electronics raised prices for advanced contract chipmaking services by up to 15% for new orders, two sources said, as demand for AI chips tightens capacity in a sector dominated by TSMC.
- With TSMC controlling more than 70% of global foundry revenue, Samsung has gained leverage to raise prices. U.S. export curbs on advanced chipmaking equipment to China have increased local firms' reliance on overseas foundries.
- Prices for SF4 customers in China rose 10% to 15%, while Taiwanese customers saw increases of 5% to 10%. Wafers using the 5-nanometre SF5 process also rose 10% to 15%.
- Samsung expects advanced processes to account for more than half of foundry revenue this year, with applications driving more than 30% of revenue. The price hikes mark a turnaround for the division, a loss maker since 2022.
- Lee Min-hee, a Seoul-based analyst at BNK Investment & Securities, said Samsung's foundry business could "potentially become profitable as early as next year" if price hikes continue.
16 Articles
16 Articles
According to insiders, due to the boom in artificial intelligence, Samsung has significantly increased the prices for its chip order manufacturing. For some modern procedures, the prices for new orders have been increased by up to 15 percent, said two people familiar with the matter on Wednesday. Demand is so high that capacity is scarce. Particularly strong is the demand of Chinese customers, who are dependent on foreign manufacturers due to US…
Samsung Electronics raised the prices of some advanced contract chip manufacturing services by up to 15% for new orders, said two people familiar with the subject, as demand for artificial intelligence chips restricts the capacity of a market long dominated by Taiwan Semiconductor Manufacturing Company (TSMC). The demand for Chinese customers has been particularly strong, but Samsung has not been able to meet all requests because it needs to sup…
Samsung Electronics has set out to improve profitability by raising prices for its advanced foundry processes by up to 15%. This strategy aims to strengthen its pricing power by taking advantage of TSMC's supply shortage caused by the surge in demand for AI chips. The price hikes were primarily applied to 4nm and 5nm processes, and orders from global companies such as Qualcomm and Broadcom continue to mount. The market anticipates that this pric…
(Seoul = Yonhap News) Reporter Kim A-ram = Samsung Electronics has raised prices for some advanced foundry (semiconductor contract manufacturing) services by up to 15% for new orders...
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