Samsung raises foundry prices up to 15% amid strong chip demand

Samsung Electronics has implemented price increases of up to 15 percent across its foundry business, reflecting tightening supply conditions and robust demand for semiconductor manufacturing capacity in the global market.

The South Korean technology giant's chip manufacturing arm has faced persistent losses in recent years as it competes with Taiwan Semiconductor Manufacturing Company for large-scale orders. However, industry analysts suggest that the combination of higher pricing and operational efficiency improvements could enable the foundry business to return to profitability as soon as next year.

The price increase comes as customers across multiple sectors seek to secure manufacturing capacity, with particular demand coming from artificial intelligence chip developers and legacy semiconductor applications. Samsung's move reflects broader industry dynamics where leading foundries possess significant pricing power given constrained production capacity.

Samsung has also been investing heavily in advanced manufacturing technologies and new fabrication plants to expand its foundry capabilities. The price adjustment represents management's confidence in the division's ability to sustain higher margins while maintaining competitive positioning in a recovering semiconductor market.

The foundry business represents a crucial growth avenue for Samsung as it seeks to diversify revenue streams beyond memory chip manufacturing, where margins have compressed amid intense competition.