Demand for AI chips has struck an insanely positive note for Samsung because the latest report states that due to overwhelming demand for wafers mass-produced on advanced processes, the Korean giant has raised prices by up to 15 percent on new orders. This move comes just a month after TSMC stated that it will raise wafer prices by up to 10 percent in 2027 .

Thanks to U.S. export controls, China is barred from purchasing advanced EUV equipment that would enable it to obtain a competitive edge against rivals, meaning that the country is limited to using SMIC’s 2nm process. According to Reuters, Chinese customers will face Samsung’s steepest price hikes, with prices rising between 10 and 15 percent.

Also, to maintain its position at the top of the food chain, U.S. customers will be served first, but they will still be subjected to the increased chip prices. Irrespective of how difficult these premiums are for these clients, it should be noted that this marks the first time Samsung is enjoying a massive turnaround in its foundry business, which has suffered a barrage of losses since 2022.

Where TSMC previously gobbled up waves of customers, Samsung is finally starting to witness some action. As for which nodes have become more expensive, the 4nm (SF4) process will be between 10 and 15 percent more expensive for U.S. and Chinese customers, whereas Taiwanese clients will pay a 5 to 10 percent higher sum.

As for the 5nm node (SF5), prices have risen by 5 to 10 percent, while the 8nm process’s price has been raised by 10 percent, according to sources familiar with the matter. Interestingly, there is no mention of any of Samsung’s 2nm nodes, which are not only the most advanced but also the most complex to mass-manufacture and come with a higher price.

Samsung recently inked a lucrative $200 billion deal with Broadcom to provide it with its 2nm technology and HBM4 memory, signaling to the entire industry that the foundry giant’s days of incurring losses are over. Given that TSMC is also experiencing a supply choke, it only makes sense that AI companies diversify their foundry partners to help obtain chip shipments in a timely fashion.

News Source: Reuters

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