Your next midrange smartphone could cost more, and Samsung is the culprit. According to a report from Reuters, the Korean company has raised the prices for its advanced contract chipmaking services starting September 2026.
4nm and 5nm chips to become 10% and 15% more expensive
Samsung is hiking the prices of its advanced contract chipmaking services. | Image by Samsung
Samsung produces chips for many clients, including Apple, Broadcom, Google, Nvidia, and Tesla, and also Chinese and Taiwanese companies as well. According to the report, Samsung will raise the prices for 4 nm (SF4) and 5 nm (SF5) class process nodes by 10% and 15%, respectively.
The caveat is that this raises concerns for Chinese customers. For Taiwanese clients the price hike is 5% and 10% for the same nodes. Older chip processes, like the 8 nm node, will see a 10% raise in price.
Increased demand drives the prices up
Stargate datacenter cluster. | Image by OpenAI
The reason for the hike is the increased demand for AI chips worldwide. TSMC, Samsung's main rival when it comes to silicon manufacturing, is fully booked, and this forces clients to turn to Samsung Foundries.
Furthermore, Chinese and Taiwanese companies have no alternatives after the US set export restrictions on chipmaking equipment. Basically, these companies have to source chips directly from overseas factories such as Samsung Foundries and TSMC.
Read more about chip prices, memory crisis, and manufacturing processes here:
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TSMC's A16 process node will be ready for mass production later this year
TSMC officially enters the 2nm chipset realm, only certain flagships will get the monster treatment
Midrange phones could become more expensive
Is this the end of great value midrange phones? | Image by PhoneArena
Samsung Foundry's 4nm production line in Pyeongtaek is working at full capacity and takes orders from many clients, Qualcomm included. The foundry also makes Samsung's own (HBM) memory chips, so the price hike could hit hard.
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Thankfully, Qualcomm now buys dies almost exclusively from TSMC, so the price hike will hit Chinese smartphone brands, as well as mid-range Samsung phones using Exynos processors.
The bad news is that great-value phones such as the Galaxy A27 or the Galaxy A57 could become much more expensive.
Broadcom chips, manufactured by Samsung using 4nm node, can be found in a wide variety of devices, including smartphones, and this could further raise phone prices next year.
Buy a new phone now or hold to your current device for the years to come?
24 Votes
What's the best course of action?
The memory crisis is in full swing, and there's no end in sight. Smartphone manufacturers struggle to keep prices intact, and the major brands already announced price hikes. The iPhone 18 lineup, for example, is expected to be significantly more expensive than the previous generation.
The best possible course of action in these circumstances is to hold on to your current phone for as long as you can. Or alternatively, buy the latest models that managed to keep their prices down. Tough times ahead.
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Mariyan, a tech enthusiast with a background in Nuclear Physics and Journalism, brings a unique perspective to PhoneArena. His childhood curiosity for gadgets evolved into a professional passion for technology, leading him to the role of Editor-in-Chief at PCWorld Bulgaria before joining PhoneArena. Mariyan's interests range from mainstream Android and iPhone debates to fringe technologies like graphene batteries and nanotechnology. Off-duty, he enjoys playing his electric guitar, practicing Japanese, and revisiting his love for video games and Haruki Murakami's works.
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