According to Reuters, Samsung Foundry is experiencing a significant increase in customer orders, prompting the company to adjust its pricing strategy across multiple nodes. In July, Samsung raised the price of its 4 nm node, known as SF4, by about 10-15% for customers in the United States and China, while customers in Taiwan saw a more modest increase of 5-10%. Prices for wafers produced with the 5 nm node, referred to as SF5, also rose by 10-15%. Interestingly, even the older 8 nm node experienced a 10% price hike. This increase for the SF8 node is likely due to NVIDIA placing orders for its GeForce RTX 3060, a product the company has reintroduced after several generations.

There is no mention of price hikes for newer nodes such as Samsung SF2, SF3, and their variations. It seems Samsung anticipated the level of external customer demand for these nodes, and they are already quite costly. Notably, Reuters reports that U.S.-based customers are prioritized after Samsung's internal chip demand for its own SoCs, while China-based design houses are third in line. However, as China seeks advanced nodes, they are willing to accept higher price increases to secure allocation at Samsung Foundry at any cost.

For Samsung's general foundry business, these price hikes indicate that the unit is finally on track to become profitable as early as next year, marking a significant turnaround for a division that has been operating at a loss since 2022. The world's largest foundry, TSMC, produces about 70% of the world's silicon, while Samsung accounts for just 7%. With node yields improving and silicon demand surging, we expect Samsung's foundry business to gain momentum and achieve profitability soon.