Samsung said this week that it will adjust the pricing of its semiconductor wafers to fund the expansion of its S5 wafer fab near Pyeongtaek, South Korea. Just like its industry peers, Samsung foundries have problems meeting the demand for their services, so investing in advanced production facilities will ensure that more chips can be produced using its advanced nodes in the future. At the same time, rising prices may affect the cost of GPUs, SoCs and controllers produced by Samsung’s foundries.
“[Samsung Foundry] It will accelerate growth by expanding Pyeongtaek’s S5 Line production capacity and adjusting pricing to achieve future investment cycles,” said Ben Suh, Samsung’s senior vice president of investor relations during the company’s earnings call with analysts and investors (via Find Alpha and eeNews Europe).
Samsung’s foundry’s S5 Line is the company’s most advanced production facility designed to process wafers using the company’s 5LPP (5 nm), 4LPE (4 nm) and thinner production technologies. Due to the extensive use of extreme ultraviolet (EUV) lithography in the fab, the cost of its expansion is very high, because the cost of EUV scanners is between 120 million and 150 million US dollars (a significant increase compared to modern DUV scanners), so Samsung recently Has been actively increasing its capital expenditures for years-hoping that its customers will pay for it, albeit indirectly.
Samsung foundry uses its latest node to produce a large number of Exynos system-on-chips for smartphones used by its parent company and several other smartphone manufacturers. In addition, Samsung foundries produce millions of amps of graphics processors for Nvidia and tens of millions of other SoCs for many companies.Although Samsung’s foundry cannot raise its quotation overnight due to contractual obligations, it can adjust its pricing relatively quickly, which may result in many Best graphics card Even more expensive.
It remains to be seen how the rising prices of Samsung foundries will affect the prices of smartphones and graphics cards, but its customers will definitely try to offset higher manufacturing costs in some way.
Samsung is the only semiconductor contract manufacturer that officially confirmed the increase in wafer prices for its customers.According to reports, TSMC Cancel discount For large customers who started at the beginning of this year, but in terms of price increases, the company prefers stability rather than short-term earnings. Say recent. Media reports claim that UMC has increased the production price of using mature nodes, but the company has not officially confirmed this.