TSMC and Samsung increase contract costs for 5nm and 4nm technologies due to surging AI chip demand, with analysts predicting market growth to $218.8 billion by 2026.
© D. Novikov
Major semiconductor manufacturers have started raising prices for advanced process technologies amid surging demand from the artificial intelligence industry. According to analysts at TrendForce, TSMC and Samsung have already adjusted contract manufacturing costs for key 5-nanometer and 4-nanometer technologies.
TSMC's capacity utilization for modern processes remains at maximum levels. This applies not only to 5/4-nanometer lines but also to more advanced 3-nanometer and even future 2-nanometer solutions. Against this backdrop of scarcity, the company has increased prices across all major advanced nodes, reflecting intensifying competition for manufacturing resources.
Samsung is also seeing growing orders for 5/4-nanometer processes, primarily driven by AI chip makers. The company notified clients of price increases as early as late 2025, a move now confirmed by industry data. In practice, this means both leading foundries are responding in sync to market overload while aiming to boost production margins.
Analysts expect the global contract chip manufacturing market to grow by nearly a quarter in 2026, reaching approximately $218.8 billion. The main driver is precisely these advanced processes, while the mature technology segment shows more restrained growth. For readers following industry trends, this matters because TSMC is projected to maintain its leadership and widen its gap with competitors.