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The Economic Times
Samsung hikes chipmaking prices by up to 15% on demand spike
Samsung Electronics has increased prices for its advanced contract chipmaking services by up to 15% due to a surge in demand, particularly from Chinese customers. This development comes as the company's foundry business, which has faced losses since 2022, now sees heightened demand for AI chips. Despite strengthening demand, Samsung must balance orders from U.S. clients and its in-house chip production, limiting its capacity to fulfill all requests. The price increase marks a notable change for Samsung's foundry division, previously overshadowed by TSMC. Analysts suggest that as TSMC raises its prices due to tight capacity, clients might shift to Samsung, further bolstering its market position. With expectations of moving towards profitability in the foundry sector, the demand upswing could represent a positive turning point for Samsung as it seeks to capture more market share in the AI chip manufacturing space.
MonitorConfidence: HighShort term horizon
Published 19 Aug 2026, 10:30 UTC5 min read
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Summary
TL;DR
- Samsung raised chipmaking prices by up to 15% for new orders.
- Strong demand, especially from Chinese customers, is driving the price increase.
- Samsung's foundry business has been unprofitable since 2022.
- The price hikes represent a turnaround for the company amid market challenges.
- Capacity constraints at TSMC have influenced customers to explore alternatives like Samsung.
Interesting facts
- Samsung's division previously struggled against TSMC but is now leveraging increased demand for AI chips.
- U.S. export restrictions are driving Chinese firms to rely more on foreign foundries like Samsung.