Samsung raises chip manufacturing prices as demand outpaces capacity

Just a few months ago, Samsung was struggling to attract customers for its chip manufacturing business. Now, the company is reportedly raising chip production prices as its manufacturing capacity comes under pressure from a surge in customer orders.

According to a report from Chosun Biz, Samsung Foundry has decided to increase chip manufacturing prices by up to 15% for new customers. The price hike applies to advanced process nodes such as 4nm and 5nm. The South Korean firm has also reportedly increased prices for select 8nm process nodes optimized for automotive applications. The company recently returned to monthly profitability for the first time in three years.

Chip manufacturing prices are typically stable once production yields improve. However, the ongoing AI boom has created a gap between supply and demand, prompting foundries such as Samsung Foundry and TSMC to raise prices. TSMC has also reportedly increased prices by 5% to 10% for its 3nm, 5nm, and 7nm process nodes.

Last year, Samsung Foundry secured a massive $16.5 billion chip manufacturing contract from Tesla. Since then, its fortunes appear to have improved, with several other companies, including AMD, Anthropic, BYD, Google, and Meta, reportedly interested in having their chips manufactured on Samsung’s 2nm and 4nm process nodes.