Samsung Electronics raises advanced foundry prices up to 15%, 4nm line at full capacity: Reuters

Samsung Electronics has raised prices for new orders on its advanced foundry processes by as much as 15%, with demand from Chinese customers proving particularly strong, according to sources cited by Reuters.

Citing multiple sources, Reuters reported Wednesday that Samsung Electronics raised prices for new orders on its 4-nanometer process last month.

Chinese and American customers faced increases of 10 to 15 percent, while Taiwanese customers were charged 5 to 10 percent more, the sources said.

Wafer prices for the 5nm process also rose 10 to 15 percent, and the 8nm process saw an increase of about 10 percent, according to the sources.

Demand from Chinese customers has been especially strong, though Samsung Electronics has been unable to accept all orders, the sources said, as the company must also allocate capacity for American customers and for its own in-house semiconductor production.

One source said Chinese customers were among those who accepted the steeper price increases. Reuters linked the trend to US export restrictions on advanced semiconductor manufacturing equipment bound for China, which have pushed Chinese firms to rely more heavily on overseas foundries.

Google is also in negotiations with Samsung Electronics over producing chips using its 4nm process, sources said.

Samsung Electronics' 4nm production line in Pyeongtaek has been running at effectively full capacity since late last year, Reuters reported, citing sources. The line produces not only logic chips for external customers such as Qualcomm but also base dies used in Samsung's own HBM.

Samsung Electronics said at its second-quarter earnings conference call on July 30 that it plans to begin mass production of its second-generation 2nm process in the second half of this year. The company projected that improved utilization rates, better yields and the price increases would significantly boost the foundry business's profitability.