Samsung Raises Prices on Advanced Process Nodes by Up to 15% Due to AI Chip Demand
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Quick answer
Samsung raised foundry prices for 4nm, 5nm, and 8nm process nodes by 5–15% due to capacity shortages driven by AI chip demand.
Samsung has increased foundry prices for advanced process nodes, including 4nm, 5nm, and 8nm. According to Reuters, orders from clients in China and the U.S. now cost 10–15% more, while Taiwanese companies face a 5–10% increase. The primary driver behind the price hikes is record-breaking demand for AI chips, which has fully booked the 4nm production line at Samsung’s Pyeongtaek plant.
Chinese customers, restricted by export controls from accessing modern technologies, have no choice but to accept the maximum price increases. Meanwhile, Samsung prioritizes American clients and reserves some capacity for its own needs, including chips for Qualcomm and baseboards for its HBM modules, further straining production resources.
Despite the price hikes, Samsung remains in a stronger position than TSMC, which has already notified clients of a 5–10% increase for all process nodes below 5nm. Analysts suggest that if current trends continue, Samsung’s foundry division could turn profitable as early as next year. Key clients include Tesla, Apple, Broadcom, and Nvidia.
Common questions
- Why did Samsung increase chip production prices?
- Prices rose due to soaring demand for AI chips, which fully booked Samsung’s production lines. Capacity shortages led to higher order costs.
- Which process nodes saw price hikes at Samsung?
- Orders for 4nm, 5nm, and 8nm process nodes became more expensive. The largest increases—up to 15%—applied to 4nm and 5nm nodes.
- Why do Chinese companies pay more?
- Chinese chipmakers face export restrictions that block access to advanced technologies, forcing them to accept higher prices from Samsung.
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