Samsung Electronics Raises Foundry Prices by up to 15%, 3 Reasons Accelerating Turnaround in H2

Samsung Electronics has made a bold move by raising the prices of its advanced foundry (semiconductor contract manufacturing) services, including 4nm and 5nm nodes, by up to 15%. This is largely driven by the global shortage of AI semiconductors and the maxed-out capacity of its rival, TSMC, which has significantly strengthened Samsung's pricing power. The market expects this price hike to be a key driver for a dramatic turnaround to profitability for Samsung's foundry business in the second half of 2026.

Spillover from TSMC's Capacity Limits: The Background of Samsung's Price Hike

This foundry price increase stems from structural changes in the global AI semiconductor supply chain. As orders for AI accelerators from global big tech companies like Nvidia and AMD surge, the advanced node (3-5nm) capacity of TSMC, the industry leader, has already hit its 100% limit. Consequently, fabless (semiconductor design) clients unable to secure capacity have turned to Samsung's advanced nodes as an alternative. This shift has allowed Samsung to achieve both stable order volumes and price increases.

It is reported that differential price hike rates were applied: 10-15% for US and Chinese clients, and 5-10% for Taiwanese clients. Chinese companies appear to have accepted the relatively higher increases due to their growing reliance on Samsung's foundry amid US export restrictions on semiconductor equipment. Furthermore, with the added production volume of base dies for HBM (High Bandwidth Memory), Samsung's cutting-edge nodes below 4nm are now operating at full capacity.

End of the Foundry Deficit Tunnel: Profitability Outlook for H2

The financial investment industry anticipates that Samsung Electronics' foundry profitability will improve rapidly starting with this price hike. Breaking the chain of deficits that has persisted since 2022, the prevailing view is that a full-scale transition to surplus will be possible as early as the third quarter of 2026. The effects of the price increase will be fully reflected from Q3 earnings. Additionally, cost reduction effects through economies of scale are expected, supported by a recent 240 billion KRW investment to foster a production base at the Gwangju plant. This turnaround expectation is likely to serve as a strong support factor for Samsung's stock price amid the recent plunge in the KOSPI market.

Frequently Asked Questions (FAQ)

Q1. Will Samsung's foundry price hike affect the prices of consumer IT devices?

In the short term, it is unlikely that prices of finished IT products like smartphones or PCs will immediately surge. However, as chipset manufacturing costs rise, it could act as pressure to increase the launch prices of flagship AI smartphones or high-performance laptops scheduled for release next year.

Q2. Which related stocks or sectors will benefit from this price hike?

An increase in Samsung's foundry utilization rate is a boon for the entire domestic semiconductor materials, parts, and equipment ecosystem. In particular, earnings improvements are expected for companies related to pellicles and EUV (Extreme Ultraviolet) equipment, which are essential for fine foundry processes, as well as semiconductor testing and packaging (OSAT) firms.