Price increase of 10%! Samsung foundry considers raising prices for 4nm and 8nm processes

Samsung Electronics’ wafer foundry division is planning to adjust its pricing strategy, proposing price increases for select mature process technologies to address capacity constraints and improve profitability. This move signals that, with yields stabilizing and demand concentrating, Samsung is attempting to reshape its pricing structure in the foundry market. According to semiconductor industry insiders cited by Korean media ZDNET, Samsung’s wafer foundry center has recently begun discussions with key partners, focusing on raising prices for its 4nm and 8nm processes. Market sources reveal that the expected price hike is about 10%, with the actual increase possibly varying depending on customer type and process differences. The main reason for this price increase is that the capacities of these two process nodes are nearing their limits. As the 4nm and 8nm processes move beyond the yield ramp-up period and reach maturity, performance-driven customers tend to lock in 4nm capacity, while those more sensitive to cost place large orders for 8nm, resulting in high utilization of related production lines. Representatives from design companies have confirmed recent rumors about tight capacity at Samsung’s foundry and said internal teams are indeed discussing possible price adjustments. This pricing move is expected to help Samsung Electronics secure ongoing investment in its process technologies and improve profitability over the mid to long term. Even after the price increase, the industry generally believes that, compared to rival TSMC’s continuous price hikes, Samsung foundry will retain a certain cost advantage for price-sensitive customer groups. Capacity constraints driving price reevaluation The current price increase plans reflect robust demand for specific mature processes. According to Korean media ZDNET, the 4nm and 8nm nodes are the most in-demand areas of Samsung’s foundry business, with actual capacity utilization close to the maximum. This tight supply-demand relationship directly creates momentum for price adjustments. With yields now highly stable for these two process nodes, 4nm has become the primary choice for customers seeking high-performance chip mass production, while 8nm provides a competitive solution for those prioritizing cost-effectiveness. As orders from various customers flood in, capacity bottlenecks are forcing Samsung to use pricing leverage to balance supply and demand and optimize profit structures. Maintaining an edge against TSMC One external factor in this price increase is leading industry competitor TSMC’s pricing strategy. Driven by surging demand for artificial intelligence and continued order growth, TSMC has been steadily raising its foundry prices. Amid rising labor, raw material, and energy costs, TSMC is expected to keep hiking prices this year, with some process nodes predicted to see increases of up to 20%. In this context, even with a 10% price hike, Samsung Electronics can retain relative price competitiveness in the market. According to an internal semiconductor industry source, even if Samsung ups its prices, there remains a significant pricing gap between Samsung and TSMC. For highly price-sensitive customers, Samsung foundry remains an attractive alternative. Strategic intentions and long-term profitability This price adjustment is not just a tactical response to short-term capacity pressure, but also seen as a strategic move to improve Samsung’s financial health over the mid to long term. By optimizing pricing for popular processes, Samsung’s wafer foundry division expects to secure more funds for reinvestment in its own process R&D and capacity expansion. Recent developments show that Samsung’s foundry is at a critical stage of business growth. Not only are 4nm and 8nm process nodes going strong, but the company is actively expanding in new fields such as automotive semiconductors, having previously secured 8nm orders from Hyundai Motor and planning to push ahead with 2nm mass production by 2026 as scheduled. Through this price adjustment, Samsung aims to solidify its profit base to stockpile resources for next-generation advanced process competition. Risk Warning and Disclaimer The market has risks, and investment requires caution. This article does not constitute personal investment advice, nor does it consider the specific investment objectives, financial situation, or needs of any particular user. Users should consider whether any opinions, views, or conclusions discussed herein are appropriate for their individual circumstances. Investing based on this information is at your own risk.