Samsung Electronics and SK Hynix are reportedly pressing South Korean semiconductor substrate suppliers to lower prices for the second half of 2026, even as memory demand remains in a Super Cycle. According to ET News, the talks have intensified pressure across the supply chain as raw material costs stay high and substrate makers warn of margin erosion.
Industry sources said substrate suppliers want higher prices because procurement costs for gold and copper remain elevated and the broader semiconductor market is still strong. But chipmakers are considering reductions for the second half of 2026, arguing that substrate prices were already partially raised in the first quarter of 2026.
The Korea Printed Circuit Association said most semiconductor substrate makers involved in the negotiations have already received customer requests for lower supply prices in the second half. If those cuts are approved, the price increases implemented in the first quarter of 2026 could be wiped out.
Samsung and SK Hynix had previously agreed to lift semiconductor substrate prices by an average of 3% to 4% to reflect heavy raw material pressure on manufacturers. As gold and copper prices have gradually stabilized, the discussion has shifted toward cuts, with the industry expecting lower prices could start as early as July 2026.
Lower prices would improve profitability for the chipmakers, but substrate suppliers would still face high input costs and weaker selling prices. South Korean substrate makers are urging a delay, saying supply-chain partners should also share in the gains from the Super Cycle so they can keep investing in research and development, production equipment, and quality improvements.
Article edited by Jack Wu
