Samsung has reportedly increased wafer manufacturing prices by up to 15% as supply crunches at TSMC leave chip designers searching for alternative capacity. The price adjustments hit 4nm, 5nm, and 8nm production lines for international customers looking to secure high performance silicon for AI workloads. But strong demand from Chinese buyers means Samsung is already struggling to fulfill every incoming order.
According to a Reuters report citing industry insiders, Samsung raised pricing across multiple advanced manufacturing tiers. The 4nm SF4 production line saw cost increases between 10% and 15% for clients based in the US and China. Customers in Taiwan saw smaller bumps between 5% and 10%. Older nodes experienced similar jumps, with 5nm SF5 wafers climbing 10% to 15% and 8nm silicon rising by nearly 10%. Samsung declined to comment on the operational changes.
The pricing adjustments come as TSMC struggles to keep up with explosive AI chip orders. With TSMC booking out almost all of its advanced production lines, hardware designers have turned to Samsung as a viable backup. Demand is exceptionally strong from Chinese technology companies. Stricter trade limits on chipmaking equipment have pushed Chinese firms to rely heavily on international contract manufacturers for advanced silicon.
This pricing power could mark an important turning point for Samsung. The foundry division has struggled with profitability since 2022, even while memory chip sales reached record highs. Research data from Counterpoint shows Samsung held just 7% of global foundry revenue during Q1, compared to over 70% for market leader TSMC. Better manufacturing yields are now helping Samsung win more clients and secure higher margins in the contract fabrication market.
