Samsung (164news.com on samsung) (samsung on 164news.com) Raises Foundry Prices by Up to 15%
Samsung has raised prices for its advanced foundry work by up to 15%, according to a Reuters report. This increase primarily affects new orders and is driven by a surge in demand for AI chips.
Key Points:
- The price hikes took effect in July, focusing on Samsung's 4-nanometre process (SF4).
- Customers in China and the U.S. experienced increases of 10-15%, while Taiwanese customers faced smaller rises of 5-10%.
- Smaller process nodes, measured in nanometres, indicate more advanced chips. SF4 is Samsung's workhorse node for AI chip production.
- Chinese demand has been particularly strong, but Samsung cannot fulfill all orders due to serving U.S. customers and maintaining some capacity for its own chip production.
- This price increase marks a turning point for Samsung's foundry business, which has struggled with losses since 2022.
Reasons Behind the Price Hike:
US export curbs on advanced chipmaking equipment have pushed Chinese firms towards foreign foundries like Samsung. With TSMC's leading-edge capacity booked up by AI demand, Samsung is in a position to charge higher prices. This shift allows Samsung to move from being a price-competitive number two to a market where customers come to them because TSMC is full, and they can command higher rates.