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Samsung Electronics has increased the contract prices for certain memory chips by as much as 60% since September, according to industry sources.
The price for a 32 GB DDR5 module reportedly jumped from about $149 to $239, while 16 GB modules rose around 50% and 128 GB modules approached $1,194.
This dramatic increase is driven by acute shortages in memory supply, fueled largely by massive demand from AI-data-centres and server infrastructure. Tom's Hardware+1
For Samsung, this gives significant pricing power—analysts say its comparatively slower shift into ultra-high-end AI memory chips means it still has strong exposure in commodity memory markets, which are currently tight.
However, the ripple effects are broad: higher memory costs are beginning to squeeze manufacturers of servers, PCs and smartphones, who may pass on the cost to consumers or face margin pressure.
In short, Samsung’s hike reflects a broader market tightening: supply is constrained, demand is surging (especially from AI/servers), and customers are beginning to pay steep premiums for memory modules that were far cheaper just months ago.
It has been a good time to own Micron stock, a much more memory pure play than Samsung. I've sometimes thought Micron was lost in their own house, but even Micron can figure out how to make money when what they make is in short supply with high demand.
Semiconductor Manufacturing International Corp 0981.HK, China's largest contract chipmaker, on Friday said growing worries about a shortage of memory chips are prompting its customers to hold back their orders for other types of semiconductors.
FWIW, At retail people are seeing double and higher prices for 16, 32, and 64GB kits - at least at US e-tailers and brick store retailers. This is definitely going to have a knock on effect for PC market sales - both corporate and DIY.
There are also some rumors that Nvidia may cancel it's Nvidia 50 "Super" series because of pricing of RAM. 50 Super was to use 3GB chips instead of 2GB to increase RAM by 50% vs "non super" models.
FWIW, At retail people are seeing double and higher prices for 16, 32, and 64GB kits - at least at US e-tailers and brick store retailers. This is definitely going to have a knock on effect for PC market sales - both corporate and DIY.
There are also some rumors that Nvidia may cancel it's Nvidia 50 "Super" series because of pricing of RAM. 50 Super was to use 3GB chips instead of 2GB to increase RAM by 50% vs "non super" models.
the pricing will get wild and will be renegotiated. As an example: Spot pricing, low volume customers will get cut off. Mobile which has low prices but historically high volume will be forced to pay more, memory makers are deciding who gets memory based on market and long term growth. I would doubt Hynix is going to raise prices to Nvidia 30% in a quarter just because they can. but we will see.
We need memory to continue to be a constraint long term to keep margins high (we being memory company veterans). No overbuilding of fabs..... like past 30 years of cycles. so far so good. but watch what Samsung does.
the pricing will get wild and will be renegotiated. As an example: Spot pricing, low volume customers will get cut off. Mobile which has low prices but historically high volume will be forced to pay more, memory makers are deciding who gets memory based on market and long term growth. I would doubt Hynix is going to raise prices to Nvidia 30% in a quarter just because they can. but we will see.
We need memory to continue to be a constraint long term to keep margins high (we being memory company veterans). No overbuilding of fabs..... like past 30 years of cycles. so far so good. but watch what Samsung does.
