Samsung Electronics has raised the rates that it charges for advanced chimpaking contract services by up to 15% for its latest orders, according to a Reuters report on Wednesday.
Despite notable demand from Chinese customers, Samsung has been unable to entirely provide for it owing to its commitment to US customers as well as meeting its own chip requirements, for which it has set aside some of its production capacity, as per anonymous sources that the report cited.
Chinese clients have seen the sharpest uptick in prices amid the restrictions imposed by the US such as barring the export of AI chips from companies such as Nvidia and AMD to China. This also involves the prohibition of shipping semiconducter manufacturing equipment including lithography machines and fabrication plants.
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The increase in chip rates are likely to bolster Samsung's foundry business, which has been making lossses from 2022 onwards, according to estimates from industry analysts. The sector has faced issued with reducing its losses in comparison to Taiwan Semiconductor Manufacturing Co (TSMC), despite Samsung seeing record profit levels due to the escalating prices of memory chips due to burgeoning demand from AI technologies.
Samsung Electronics raised prices for customers in China and the U.S. by 10% to 15% for its 4-nanometre SF4 process, while prices for customers in Taiwan increased by 5% to 10%, as per the report. Prices for wafers made using its 5-nanometre SF5 process rose 10% to 15%, while those for the older 8-nanometre technology increased by nearly 10%.
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