Shares of Samsung Electronics jumped 5.6% to €2,920 on August 20 after Reuters reported the company raised prices on advanced contract chipmaking by as much as 15% — the strongest sign yet that its long-struggling foundry business may finally stop bleeding money. But the stock's wild recent swing — from $2,750 on August 11 to today's level — reveals investors are still trying to price a unit that has posted losses for four straight years.
AI Demand Is Giving Samsung Pricing Power It Hasn't Had in Years. Samsung raised prices in July 2026 for chips made on its most advanced 4-nanometer process, with U.S. and Chinese customers facing increases of 10% to 15%.
Its 5-nanometer line saw similar hikes, while the older 8-nanometer process rose nearly 10%.
The breadth of the increases signals that demand is spreading across multiple chip technologies, not just the cutting-edge AI processors. For shareholders, wider price increases translate directly into fatter margins on every wafer Samsung sells.
The Foundry Unit Just Posted Its First Monthly Profit in Three Years. Samsung's foundry division turned profitable on a monthly basis in June 2026 — its first profitable month in three years.
Internal projections now point to a quarterly profit in Q3 2026, a quarter ahead of previous expectations.
One analyst noted that "its foundry business could potentially become profitable as early as next year, earlier than previously expected" — but the July price hikes may accelerate that timeline further.
TSMC's Full Factories Are Samsung's Best Recruiting Tool. Orders once concentrated at TSMC are now shifting to Samsung as AI-chip demand pushes the Taiwanese giant's advanced capacity to saturation.
Google is reportedly in discussions to have Samsung manufacture chips on its 4-nanometer process.
Nvidia's CEO said in March that Samsung would build the company's new AI inference processor. These marquee wins give the foundry unit revenue visibility that extends well beyond a single quarter.
The Structural Gap Remains Enormous. Samsung still holds roughly 7% of global foundry revenue, versus more than 70% for TSMC.
Samsung plans to spend over $73 billion on facilities and R&D in 2026 , but whether this short-term pricing boost translates into long-term customer loyalty depends on yield improvements on its next-generation 2-nanometer process. A 15% price increase on a 7% market share is meaningful — but it is still a fraction of what TSMC earns from the same AI wave.