Samsung Electronics has raised prices for some of its advanced contract chipmaking services by up to 15% for new orders, according to sources familiar with the matter. The price hike is driven by surging demand for AI chips that has left the global foundry industry struggling to keep up.
The move reflects the broader dynamics in the semiconductor industry, where demand for AI accelerators and custom chips has outstripped available manufacturing capacity. Samsung, the world's second-largest contract chipmaker after TSMC, is capitalizing on the supply crunch to improve its foundry margins.
The price increase comes amid a broader cycle of chip industry inflation driven by AI demand. Samsung has already raised memory chip prices significantly throughout 2026, with DRAM prices climbing as the company's entire capacity for the year has been pre-booked. Industry-wide demand fulfillment rates stand at only about 60%, according to market reports.
Samsung's foundry business has been working to regain market share from TSMC, which dominates the advanced chip manufacturing market. The ability to raise prices suggests Samsung's foundry services are seeing strong demand, potentially from customers seeking alternatives to TSMC's constrained capacity.
The price hikes underscore the massive capital requirements of the AI boom, with Big Tech companies collectively expected to spend more than $700 billion on AI infrastructure in 2026.
