Samsung Boosts Memory Chip Prices by 60% Amid AI Demand Surge
Samsung Electronics has significantly increased prices for certain memory chips, with hikes reaching up to 60 per cent since September, driven by a surge in demand from companies eager to establish AI data centres, according to the reports. Server manufacturers and data center constructors are currently facing challenges in obtaining sufficient chips, and increasing memory chip prices may lead to higher expenses for smartphones, computers, and various other devices. Samsung, the leading memory chip manufacturer globally, postponed the announcement of contract prices for October, even though pricing is typically communicated on a monthly basis. According to Tobey Gonnerman, president of Fusion Worldwide, the company’s 32GB DDR5 modules surged to $239 in November, a significant increase from $149 in September.
Many of the largest server makers and data centre builders are now accepting that they won’t get nearly enough product, and the price premiums being paid are extreme, Gonnerman told. According to industry executives, the shortage has led to panic buying among certain customers, while China’s leading contract chipmaker SMIC announced that the ongoing crunch is compelling customers to postpone orders for additional chips. Xiaomi cautioned last month that rising memory costs are driving up the expenses associated with smartphone production. The shortage is aiding Samsung’s profits in their recovery after falling behind competitors in advanced AI chips.
Samsung’s gradual transition towards AI-focused semiconductors has created additional space in its memory business, enhancing its pricing power compared to rivals SK Hynix and Micron, Jeff Kim of KB Securities informed Reuters. The company is anticipated to increase quarterly contract prices by 40-50 percent for the October-December period, surpassing the industry’s approximate 30 percent rise, according to TrendForce analyst Ellie Wang. She noted that they are really confident that the price is going to increase, and the main reason is that now the demand is really strong, and everyone is working on long-term agreements with the suppliers.
Wang added that these long-term agreements will typically run into 2026 or 2026-2027, reflecting the sustained demand outlook for AI-driven infrastructure. The ongoing shortage, panic buying, and rising production costs across the tech ecosystem are all contributing to Samsung’s strengthening market position as it capitalizes on elevated pricing power. Meanwhile, companies struggling to secure memory components continue to experience mounting cost pressures, signalling that the broader electronics industry may face sustained pricing challenges as AI-related demand accelerates.
