&nbsp;Samsung Electronics has raised prices for some advanced chipmaking services by up to 15 per cent, according to people familiar with the matter, as the AI boom puts growing pressure on semiconductor manufacturing capacity.&nbsp;The increase affects chips made using Samsung's 4nm, 5nm and 8nm processes. Customers in China and the US are facing the steepest increases, with some prices rising between 10% and 15%. The development is significant because Samsung's foundry business has struggled for years to compete with Taiwan Semiconductor Manufacturing Co, or TSMC.&nbsp;<h2>Why are Samsung's chip prices rising?</h2>The main reason is simple: AI companies need enormous amounts of advanced chips, but manufacturing capacity is limited.&nbsp;TSMC remains the dominant player. Counterpoint estimates that it controlled about 73% of the pure-play foundry market in the first quarter of 2026, compared with 7% for Samsung Foundry. With TSMC's leading-edge capacity heavily booked, some customers are looking for alternatives. That gives Samsung more room to increase prices. Samsung's 4nm SF4 prices rose by 10% to 15% for customers in China and the US, according to Reuters' sources. Prices for Taiwan-based customers increased by 5% to 10%. Its 5nm SF5 wafers also became 10% to 15% more expensive, while 8nm prices rose by almost 10%. Samsung declined to comment on the reported changes.&nbsp;<h2>China faces some of the biggest increases</h2>Chinese customers are reportedly among those accepting the steepest price rises. US restrictions on advanced chipmaking equipment have made it harder for Chinese companies to access cutting-edge domestic manufacturing. That has increased their reliance on overseas foundries. At the same time, Samsung's own capacity is under pressure. Its SF4 line at the Pyeongtaek plant in South Korea has reportedly been running at full capacity since late 2025. The company is also reserving capacity for its own semiconductor products, including components used in high-bandwidth memory systems.&nbsp;<h2>Samsung sees a chance to revive its foundry business</h2>The price increase could be an important turning point for Samsung. Its foundry division has struggled with profitability since 2022, while its memory business has benefited enormously from AI demand. Samsung's overall semiconductor position has also strengthened through partnerships across the AI supply chain. Samsung and Broadcom recently announced a collaboration spanning memory, foundry and advanced packaging, with the companies expecting more than $200 billion of combined business through 2030. Samsung has also secured or pursued chipmaking relationships involving companies including Tesla, Apple, Nvidia and Google. Analysts now believe stronger demand, higher factory utilisation and better production yields could help Samsung's foundry business return to profitability sooner. The bigger picture is clear: the AI boom is no longer just increasing demand for powerful chips. It is also giving chipmakers more power to decide how much those chips cost.

Samsung has reportedly raised prices for advanced foundry services by up to 15% as AI demand tightens chipmaking capacity. The move could strengthen Samsung's struggling foundry business, while customers face higher costs for advanced 4nm and 5nm chips.

Samsung Electronics has raised prices for some advanced chipmaking services by up to 15 per cent, according to people familiar with the matter, as the AI boom puts growing pressure on semiconductor manufacturing capacity. The increase affects chips made using Samsung's 4nm, 5nm and 8nm processes. Customers in China and the US are facing the steepest increases, with some prices rising between 10% and 15%. The development is significant because Samsung's foundry business has struggled for years to compete with Taiwan Semiconductor Manufacturing Co, or TSMC. Why are Samsung's chip prices rising? The main reason is simple: AI companies need enormous amounts of advanced chips, but manufacturing capacity is limited. TSMC remains the dominant player. Counterpoint estimates that it controlled about 73% of the pure-play foundry market in the first quarter of 2026, compared with 7% for Samsung Foundry. With TSMC's leading-edge capacity heavily booked, some customers are looking for alternatives. That gives Samsung more room to increase prices. Samsung's 4nm SF4 prices rose by 10% to 15% for customers in China and the US, according to Reuters' sources. Prices for Taiwan-based customers increased by 5% to 10%. Its 5nm SF5 wafers also became 10% to 15% more expensive, while 8nm prices rose by almost 10%. Samsung declined to comment on the reported changes. China faces some of the biggest increases Chinese customers are reportedly among those accepting the steepest price rises. US restrictions on advanced chipmaking equipment have made it harder for Chinese companies to access cutting-edge domestic manufacturing. That has increased their reliance on overseas foundries. At the same time, Samsung's own capacity is under pressure. Its SF4 line at the Pyeongtaek plant in South Korea has reportedly been running at full capacity since late 2025. The company is also reserving capacity for its own semiconductor products, including components used in high-bandwidth memory systems. Samsung sees a chance to revive its foundry business The price increase could be an important turning point for Samsung. Its foundry division has struggled with profitability since 2022, while its memory business has benefited enormously from AI demand. Samsung's overall semiconductor position has also strengthened through partnerships across the AI supply chain. Samsung and Broadcom recently announced a collaboration spanning memory, foundry and advanced packaging, with the companies expecting more than $200 billion of combined business through 2030. Samsung has also secured or pursued chipmaking relationships involving companies including Tesla, Apple, Nvidia and Google. Analysts now believe stronger demand, higher factory utilisation and better production yields could help Samsung's foundry business return to profitability sooner. The bigger picture is clear: the AI boom is no longer just increasing demand for powerful chips. It is also giving chipmakers more power to decide how much those chips cost.

Samsung has reportedly raised prices for advanced foundry services by up to 15% as AI demand tightens chipmaking capacity. The move could strengthen Samsung's struggling foundry business, while customers face higher costs for advanced 4nm and 5nm chips.

Samsung raises semiconductor prices by up to 15%: What’s driving the increase

 Industry executives say the current situation reflects a broader structural challenge rather than a temporary supply chain disruption. As AI demand continues to expand, multiple sectors could experience mounting pressure to secure access to critical semiconductor components.

Buying new phone? AI boom could make your smartphone prices more expensive: Here's why

Taiwan Semiconductor Manufacturing, the world's largest manufacturer of advanced chips, Thursday posted a phenomenal 54 per cent jump in net profit for its third quarter, sending shares soaring nearly 10 per cent during trading.

The chip giant, which counts some of the best-known names in the industry as high-profile clients, including Apple and Nvidia, has proved itself to be a critical beneficiary of the spiking demand for chips primarily driven by increasing applications of artificial intelligence according to a detailed report by CNBC.

Actually, a good financial performance by TSMC happens at a time when the global chip makers are witnessing an increased demand due to the AI boom. The company now expects a rise in revenues in the last quarter of the year as it outlines a continued expansion process within the semiconductor industry.

Other chip makers' shares also surged after TSMC's earnings release. Nvidia, Micron, and AMD all rose around 1 per cent in Thursday's market close following investor responses to the market's optimistic outlook. 
 
Outperformance: Third quarter beats estimates

The company's revenues for the third quarter came in at $23.5 billion and marked a 36 per cent increase year-over-year, it said, according to the report. TSMC's net income also hit 325.3 billion New Taiwan dollars ($10.1 billion) against the LSEG estimate of NT$300.2 billion for the July-September quarter, said the media outlet. In contrast, the gross margin of TSMC improved to 57.8 per cent from 54.3 per cent during the same period last year.

Taiwan Semiconductor Manufacturing Company Chief Financial Officer Wendell Huang said he is confident about the future performance of the company. "Based on the current business outlook, we expect fourth-quarter revenue to be between $26.1 billion and $26.9 billion, representing a 13 per cent sequential increase or a 35 per cent year-over-year increase at the midpoint," Huang said in an earnings call, according to a FactSet transcript.

The good third quarter was driven by healthy demand for TSMC's 3nm and 5nm technologies, which are particularly necessary for smartphones and AI-related applications. "Our business was supported by strong smartphone and AI-related demand," TSMC noted in a statement.

AI demand and future prospects

TSMC Chairman and CEO C.C. Wei emphasized the growing significance of AI in the semiconductor industry. Speaking during the earnings call, Wei said the demand for AI is "real," and that the growth experienced by TSMC was "the deepest and the widest" compared with others in the industry. He also added that almost every major AI innovation comes from a hyperscaler building its own chip, and they all work with TSMC.

The company's shares have gone up by about 80 per cent year-to-date and are above the overall market rise by 28.57 per cent in the same period.

The Taiwanese-based company, TSMC, has upgraded its book on the capital expenditure (capex) for the year and states that it will marginally surpass $30 billion. The cost of capex during the quarter came at $6.4 billion compared to $6.36 billion during the previous quarter.

International expansion

To answer the steadily increasing demand, which is on the rise in the United States as well, TSMC has also increased its manufacturing capacities worldwide. According to the company, it is ready to spend $65 billion in overseas investments over time through three new chip plants it is constructing in Arizona. In addition, the first factory the company opened was in Japan in this year.

In the same week where a key supplier of chip-making machines to TSMC, ASML, sliced its sales forecast lower than expected and sent shares down, TSMC reported its results. While some market participants sound alarm bells over the long-term sustainability of the AI boom, others look toward industry leaders like Foxconn CEO Young Liu, who still see room to grow the AI frenzy.

Taiwan Semiconductor Manufacturing, the world's largest manufacturer of advanced chips, Thursday posted a phenomenal 54 per cent jump in net profit for its third quarter, sending shares soaring nearly 10 per cent during trading.

Taiwan Semiconductor Manufacturing, the world's largest manufacturer of advanced chips, Thursday posted a phenomenal 54 per cent jump in net profit for its third quarter, sending shares soaring nearly 10 per cent during trading. The chip giant, which counts some of the best-known names in the industry as high-profile clients, including Apple and Nvidia, has proved itself to be a critical beneficiary of the spiking demand for chips primarily driven by increasing applications of artificial intelligence according to a detailed report by CNBC. Actually, a good financial performance by TSMC happens at a time when the global chip makers are witnessing an increased demand due to the AI boom. The company now expects a rise in revenues in the last quarter of the year as it outlines a continued expansion process within the semiconductor industry. Other chip makers' shares also surged after TSMC's earnings release. Nvidia, Micron, and AMD all rose around 1 per cent in Thursday's market close following investor responses to the market's optimistic outlook. Outperformance: Third quarter beats estimates The company's revenues for the third quarter came in at $23.5 billion and marked a 36 per cent increase year-over-year, it said, according to the report. TSMC's net income also hit 325.3 billion New Taiwan dollars ($10.1 billion) against the LSEG estimate of NT$300.2 billion for the July-September quarter, said the media outlet. In contrast, the gross margin of TSMC improved to 57.8 per cent from 54.3 per cent during the same period last year. Taiwan Semiconductor Manufacturing Company Chief Financial Officer Wendell Huang said he is confident about the future performance of the company. "Based on the current business outlook, we expect fourth-quarter revenue to be between $26.1 billion and $26.9 billion, representing a 13 per cent sequential increase or a 35 per cent year-over-year increase at the midpoint," Huang said in an earnings call, according to a FactSet transcript. The good third quarter was driven by healthy demand for TSMC's 3nm and 5nm technologies, which are particularly necessary for smartphones and AI-related applications. "Our business was supported by strong smartphone and AI-related demand," TSMC noted in a statement. AI demand and future prospects TSMC Chairman and CEO C.C. Wei emphasized the growing significance of AI in the semiconductor industry. Speaking during the earnings call, Wei said the demand for AI is "real," and that the growth experienced by TSMC was "the deepest and the widest" compared with others in the industry. He also added that almost every major AI innovation comes from a hyperscaler building its own chip, and they all work with TSMC. The company's shares have gone up by about 80 per cent year-to-date and are above the overall market rise by 28.57 per cent in the same period. The Taiwanese-based company, TSMC, has upgraded its book on the capital expenditure (capex) for the year and states that it will marginally surpass $30 billion. The cost of capex during the quarter came at $6.4 billion compared to $6.36 billion during the previous quarter. International expansion To answer the steadily increasing demand, which is on the rise in the United States as well, TSMC has also increased its manufacturing capacities worldwide. According to the company, it is ready to spend $65 billion in overseas investments over time through three new chip plants it is constructing in Arizona. In addition, the first factory the company opened was in Japan in this year. In the same week where a key supplier of chip-making machines to TSMC, ASML, sliced its sales forecast lower than expected and sent shares down, TSMC reported its results. While some market participants sound alarm bells over the long-term sustainability of the AI boom, others look toward industry leaders like Foxconn CEO Young Liu, who still see room to grow the AI frenzy.

TSMC sees Q3 profit surge driven by AI boom and 54% revenue growth

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Samsung raises semiconductor prices by up to 15%: What’s driving the increase

Buying new phone? AI boom could make your smartphone prices more expensive

TSMC sees Q3 profit surge driven by AI boom and 54% revenue growth