Samsung has increased its contract manufacturing prices for advanced nodes, as it is facing a significant surge in customer orders driven by staggering AI demand. The company is reportedly adjusting its contract prices across the board, with multiple nodes affected.
According to a Reuters report, Samsung raised the price of its 4nm node by about 10-15% for customers in China and the United States in July. Taiwan customers fared slightly better, as they only received a price increase of about 5-10%. Furthermore, prices for wafers produced on the 5nm process also rose by 10-15%, while the 8nm process node saw a 10% price increase too.
That last one is particularly interesting, as the chip for the popular Nintendo Switch 2 console is manufactured on that particular 8nm node. An increase in manufacturing contract prices for that node can certainly affect the unit’s cost, potentially leading to a price increase down the line. Nintendo supposedly picked the older 8nm production process to keep manufacturing costs down, but that seems to be slipping away as time goes on.
Nintendo has already revised Switch 2 prices once, blaming the ongoing global memory crisis. In May, Nintendo implemented a $50 price increase, taking the console to $499.99 for US customers. With the new manufacturing prices now in effect, it wouldn’t be surprising to see Nintendo announce yet another price hike for the Switch 2.
Samsung’s 8nm customers had been notified of a price increase of approximately 10% since February, according to previous reports, so this probably wouldn’t come as a shock to Nintendo. It must be noted, however, that contract terms between Nintendo and Samsung may differ from those with other customers and have not been publicly disclosed.
It is also possible that Nintendo may not pass the additional manufacturing costs on to customers. There have been reports that Nintendo has previously tried to cut costs on components such as LCDs. Moreover, Nintendo reported increased profits from software sales in the last fiscal year, so there may be an effort to keep prices stable for the time being.
Nevertheless, expecting manufacturers to absorb costs is a far-fetched fantasy in 2026, and a Nintendo Switch 2 price hike certainly looks to be on the horizon. Increased chip manufacturing costs, coupled with surging memory prices, certainly don’t bode well for Switch customers, and Nintendo can only do so much to offset the costs with software.
Samsung’s foundry business is finally on track to turn a profit for the first time since 2022. Currently, the foundry accounts for just 7% of the world’s silicon production, while rival TSMC sits at 70%. Rising demand and improved yields are definitely contributing to Samsung Foundry’s momentum going into next year.
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[PC Hardware Specialist]
Usman Saleem brings 8+ years of comprehensive PC hardware expertise to the table. His journey in the tech world has involved in-depth tech analysis and insightful PC hardware reviews, perfecting over 6+ years of dedicated work. Usman’s commitment to staying authentic and relevant in the field is underscored by many professional certifications, including a recent one in Google IT Support Specialization.
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