Samsung and TSMC are hiking foundry prices as AI demand turns chip capacity into a seller’s market.
Korean media reports that Samsung is raising prices for some semiconductor manufacturing process nodes. The move follows TSMC, although Samsung is using a more targeted approach.
Before the AI infrastructure gold rush, chipmakers had to work with customers to estimate demand for next-generation silicon. The Fruity Cargo Cult Apple would put cash into TSMC’s advanced lines to secure capacity before big product launches.
Analysts quoted by Korean media think the industry has flipped from demand-driven pricing to supply-driven pricing. In plain English, customers need wafers and foundries know it.
Demand is now outstripping supply, which gives Samsung and TSMC room to charge more. Those willing to pay get capacity, while everyone else can admire the queue.
Samsung’s latest price rises are said to focus mainly on its 5nm and 4nm process technologies. Industry sources reckon the increase is roughly 15 per cent.
The company appears to be using AI chip demand to regain some bargaining power in foundry. That is handy, because new process technologies are not cheap to build or run.
TSMC’s reported increases are broader. A June report claimed the Taiwanese foundry had raised prices by between five and 10 per cent, including mature 7nm production, which still handles plenty of useful chip work. Not every customer needs the shiniest node, although AI has made every spare wafer feel fashionable.
TSMC declined to comment directly on pricing. “Our pricing strategy is strategic, not opportunistic. We will continue to work closely with customers and sell our value to them.”
That is foundry-speak for charging what the market will bear while pretending it is a relationship-building exercise.
Industry insiders think the price rises will continue while demand holds up. With AI outfits still burning cash on accelerators, that probably gives foundries plenty of room to keep nudging the bill upwards.
