Price increase of 10%! Samsung's wafer foundry is considering raising prices for 4nm and 8nm processes

Samsung Electronics' wafer foundry division is planning to adjust its pricing strategy, proposing price increases for specific mature processes to address capacity constraints and enhance profitability. This move signifies that Samsung is attempting to reshape its pricing system in the foundry market against the backdrop of stabilizing yields and concentrated demand.

According to semiconductor industry sources disclosed to South Korean media ZDNET, Samsung's wafer foundry center has recently communicated with major partners, focusing on potential price hikes for 4nm and 8nm processes. Market reports indicate that the expected price increase is around 10%, with specific amounts potentially varying based on customer types and process differences.

This intention to raise prices primarily stems from the fact that the capacities for these two processes are nearing their limits. As the 4nm and 8nm processes have passed their yield ramp-up phase and entered a mature stage, customers focused on high performance tend to secure 4nm capacity, while those concerned with cost competitiveness are placing large orders through 8nm, leading to high loads on related production lines. Relevant personnel from design companies have confirmed that there have been recent rumors about tight capacity at Samsung's wafer foundry, and internal working groups are indeed discussing price increases.

This price adjustment is expected to help Samsung Electronics ensure its continued investment capability in its processes and improve profitability in the medium to long term. Even with the price increase, industry opinions generally believe that compared to the continuously rising prices of competitors like TSMC, Samsung's foundry will still maintain a certain cost attractiveness among price-sensitive customer groups.

Capacity Bottlenecks Drive Price Reevaluation

The current price increase plan reflects the strong demand in the market for specific mature processes. According to South Korean media ZDNET, the 4nm and 8nm processes are the areas with the most concentrated demand in Samsung's foundry business, with actual capacity utilization reaching full load.

This tight supply-demand relationship directly generates the impetus for price adjustments. Since the yields for these two processes are already very stable, for customers pursuing high-performance chip mass production, 4nm is the primary option; while for customers who value cost-performance ratio, 8nm provides a competitive solution. As various customer orders flood in, the capacity bottleneck forces Samsung to adjust supply and demand through price leverage and optimize its profit structure.

Price Advantage Compared to TSMC

One of the external considerations for this price increase is the pricing strategy of industry leader TSMC. Driven by the surge in demand for artificial intelligence and continuous order growth, TSMC has recently been raising its foundry prices. This year, affected by rising labor, raw material, and energy costs, TSMC is expected to continue its price increase strategy, with industry predictions suggesting that some of its processes may see increases of up to 20%.

In this context, even if Samsung raises its quotes by 10%, it can still maintain relative price competitiveness in the market. An insider from the semiconductor industry pointed out that even if Samsung raises prices, the price gap between it and TSMC remains significant. For those customers highly sensitive to prices, Samsung's foundry still represents an attractive alternative.

Strategic Intent and Long-term Profitability

This price adjustment is not just a tactical move to respond to short-term capacity pressures, but is also seen as a strategic measure for Samsung to enhance its medium to long-term financial health. By optimizing the pricing of popular processes, Samsung Electronics' wafer foundry division is expected to secure more funds for reinvestment in its own process research and development and capacity expansion.

Recent developments indicate that Samsung's wafer foundry is at a critical stage of business development. Not only is the 4nm and 8nm process gaining momentum, but the company is also actively expanding into new fields such as automotive semiconductors, having previously secured 8nm orders from Hyundai Motor and planning to advance the mass production of 2nm processes as scheduled in 2026. Through this price adjustment, Samsung aims to solidify its profit foundation and reserve resources for competition in the next generation of advanced processes