Samsung has recently announced a price increase for its chip manufacturing services, with reports indicating a rise of up to 15%. This change comes as companies seek alternatives to TSMC's manufacturing capacity, which has been heavily impacted by the growing demand from the AI sector.
Price Increases Across Various Nodes
As of July, Samsung began charging its customers in the US and China approximately 10-15% more for its 4nm node, known as SF4. Similarly, clients from Taiwan are also facing a price hike of 5-10%. The price adjustments are not limited to the newer nodes; even the older 8nm node has seen a price increase nearing 10%. This is particularly noteworthy as Nvidia utilizes Samsung's 8nm node for the production of the Nintendo Switch 2 chipset, alongside the recently resumed production of the GeForce RTX 3060 series.
Foundry Business Challenges and Recovery
Samsung's foundry operations have faced financial challenges since 2022, as indicated by analysts. However, the current surge in demand and the corresponding price hikes could potentially lead the foundry back to profitability sooner than anticipated. Lee Min-hee, an analyst at BNK Investment & Securities, noted that this shift may happen as early as next year.
Improved Yields and Customer Demand
In addition to increasing prices, Samsung has reported improvements in its production yields, which have attracted new clientele. A significant driver of this demand is the HBM base dies, essential components in HBM memory stacks. These dies, which facilitate power and signal routing, are manufactured at Samsung's SF4 production line in Pyeongtaek. This particular production line has been at full capacity since late last year, indicating robust demand from companies, including Qualcomm.
Financial Outlook for Samsung’s Foundry
With the ongoing increases in demand and pricing, analysts predict that Samsung's foundry revenue will witness significant growth in the latter half of this year, potentially exceeding double-digit percentage increases. This positive outlook is a stark contrast to the financial struggles faced in previous years.
Source: https://www.gsmarena.com/samsung_is_now_charging_up_to_15_more_for_the_chips_it_makes_insiders_say-news-74259.php
