South Korean company Samsung Electronics has increased the cost of its contract services for the production of advanced semiconductors. For new orders, prices have increased by up to 15%.
South Korean company Samsung Electronics has increased the cost of its contract services for the production of advanced semiconductors. For new orders, prices have increased by up to 15%.
This is reported by Reuters, citing sources.
The main driver of this decision was the high demand for chips for artificial intelligence systems, which led to a shortage of production capacity in an industry long dominated by Taiwan's TSMC.
The greatest demand is observed from Chinese customers. It is for them that the price increase was the most significant, which emphasizes the dependence of Chinese companies on foreign factories due to US sanctions. Samsung cannot satisfy all requests, as the priority remains American customers and the company's own needs.
In particular, in July, the cost of chips manufactured using the 4-nanometer SF4 process increased by 10–15% for customers from the US and China, while for customers from Taiwan, prices rose by 5–10%.
The cost of silicon wafers manufactured using the 5-nanometer process (SF5) has risen by 10–15%, and for the older 8-nanometer technology, by almost 10%.
This price increase was a significant turnaround for Samsung's contract division (Foundry), which analysts estimate has remained unprofitable since 2022. The increase in service costs could help the company close the gap with its main competitor, TSMC.
