Samsung raises foundry prices by up to 15% on 4nm, 5nm, and 8nm processes

Foundry Price Increases Implemented

Samsung has increased prices on new orders for its 4nm, 5nm, and 8nm foundry processes, with hikes reaching up to 15%. These increases were applied in July, affecting customers in various regions. Chinese chip designers, in particular, are accepting the largest price adjustments.

Capacity and Demand Drivers

The price increases coincide with high demand for Samsung's advanced nodes. The company's 4nm line at Pyeongtaek has been operating at full capacity since late last year, largely driven by orders related to AI accelerators. This strong demand, coupled with U.S. export controls limiting Chinese access to advanced tools, has allowed Samsung to implement these price adjustments.

Regional Price Variations

Customers in China and the U.S. saw quotes for the 4nm SF4 process rise by 10% to 15% from June. In contrast, customers in Taiwan experienced smaller increases of 5% to 10%. Prices for 5nm SF5 wafers increased by 10% to 15%, and the 8nm node saw an increase of close to 10%.

Competitive Landscape and Profitability Outlook

Despite these increases, Samsung's pricing remains competitive compared to TSMC, which has also announced price hikes for its sub-5nm nodes. Samsung's foundry division has been operating at a loss since 2022, but analysts suggest that continued price increases could lead to profitability as early as next year. The company has secured significant contracts with major clients like Tesla, Apple, Broadcom, and Nvidia, contributing to its growing customer base.