Samsung’s increased chip production prices to affect GPU and SoCs as well

According to the latest information, the South Korean foundry manufacturer Samsung Electronics revealed last week that it will increase foundry prices.

As per the report of Tom’s Hardware and SoyaCincau, that Ben Suh, senior vice president of Samsung’s investor relations department, said at a conference that Samsung’s foundry business is expected to accelerate growth, mainly through the expansion of the Pyeongtaek S5 production line and adjustment of pricing.

In other words, Samsung is planning to increase foundry prices to support the expansion of its S5 factory near Pyeongtaek, South Korea, so that it can get more revenue to support the next round of investment. The industry believes that the rise in Samsung foundry prices may affect the prices of chips such as GPUs, SoCs, and controllers manufactured by Samsung.

Join Sammy Fans on Telegram

Samsung Electronics plans to spend US$26.3 billion this quarter, of which US$23.75 billion is for semiconductors and US$1.6 billion is for displays. The investment in the foundry business focuses on the expansion of advanced processes, such as 5nm EUV lithography machines, and the launch of 3nm grid ring (GAA) designs.

The S5 factory is Samsung’s most advanced production line at present, which can support 5nm family 5LPP, 4nm 4LPE, and other process processes. In addition, the factory uses a large number of EUV lithography machines, and the cost of expansion is very high. Therefore, Samsung high capital expenditures in recent years, so they hope that customers will pay for it.

As we all know, Samsung uses its latest node technology to produce chips, such as its own Exynos chip, NVIDIA Ampere GPU chip, Qualcomm Snapdragon 888 chip, and tens of thousands of SoCs.

It is worth mentioning that Samsung is currently the only foundry that has officially confirmed the price increase. TSMC, UMC, SMIC, etc. reported by the media have not been formally confirmed.