Samsung Electronics has hiked prices on select advanced foundry nodes by up to 15%, effective July, according to two industry sources cited by Reuters. The 4nm (SF4) and 5nm processes saw the largest increases – 10–15% for Chinese and US clients, and 5–10% for Taiwanese customers – while 8nm rose nearly 10%.

The price adjustment follows capacity saturation at TSMC, which controls >70% of the global foundry market (vs. Samsung’s 7% in Q1 2026, per Counterpoint). With TSMC’s advanced nodes fully booked by AI orders, overflow demand is flowing to Samsung and Intel – giving Samsung stronger pricing power.

Chinese fabless chipmakers face the steepest hikes, partly due to limited advanced‑node alternatives under export controls, even as their demand surges. However, Samsung must prioritize US clients and reserve capacity for its own HBM base‑die production at the Pyeongtaek SF4 line, which has run at full capacity since late 2025.

Samsung has recently won foundry orders from Tesla, Apple, Nvidia (AI inference processors), Broadcom, and is in talks with Google for SF4‑based chips. The company expects advanced‑node revenue to exceed half of total foundry revenue in 2026, with AI/HPC contributions rising from 15–20% (end‑2025) to over 30%. Analyst Lee Min‑hee at BNK Securities noted that TSMC’s price hikes and capacity crunch are pulling orders to Samsung, potentially moving its foundry business to profitability as early as 2027 – ahead of prior expectations.

ICgoodFind Takeaway:
Tight advanced capacity is driving up costs. Chinese chip designers need diversified foundry strategies – relying on a single source risks both supply and pricing shocks.