Samsung Raises Memory Chip Prices Amid Shortage

Global demand for AI data centers drives steep increases

Samsung Electronics has sharply increased prices for certain memory chips this month, with hikes reaching up to 60 percent compared to September. The decision comes as demand surges worldwide due to the rapid expansion of AI data centers, leaving supplies strained. Pricing announcements, usually made monthly, were delayed in October, adding uncertainty for buyers. Rising costs are expected to pressure companies building data infrastructure and may spill over into consumer products such as smartphones and computers.

Steep Price Increases Across DDR5 Chips

Contract prices for Samsung’s 32GB DDR5 memory modules jumped to $239 in November, up from $149 in September. Prices for 16GB and 128GB DDR5 chips rose by about 50 percent, reaching $135 and $1,194 respectively. Other modules, including 64GB and 96GB DDR5, saw increases of more than 30 percent. Industry distributor Fusion Worldwide described the premiums as extreme, noting that many server makers now accept they will not receive sufficient supply.

DDR memory chips are essential for servers and computing devices, enabling rapid data transfer and temporary storage. The shortage has triggered panic buying among some customers, according to analysts. A second source confirmed Samsung’s price hikes but declined to be identified, as the information is not public. Samsung itself has not commented on the developments.

Impact on Industry and Consumers

China’s leading contract chipmaker SMIC reported that the memory shortage is causing customers to delay orders for other types of chips. Xiaomi also warned that rising memory costs are increasing the expense of manufacturing smartphones. The situation highlights how shortages in one segment can ripple across the broader electronics industry. For companies reliant on large-scale data infrastructure, the higher costs pose significant challenges.

Despite the strain on buyers, the shortage has benefited Samsung financially. The company has lagged behind rivals in advanced AI chips but now enjoys stronger pricing power in memory compared to competitors such as SK Hynix and Micron. Analysts suggest that Samsung’s slower transition to AI chips has allowed it to capitalize on current market conditions. The company’s profits, which had not risen as sharply as rivals, are now expected to improve.

Outlook for Pricing and Supply

TrendForce analyst Ellie Wang forecast that Samsung will raise quarterly contract prices by 40 to 50 percent in the October–December period. This increase is higher than the 30 percent average expected across the wider industry. Strong demand and long-term supply agreements are driving confidence that prices will continue to rise. Contracts are already being negotiated for 2026 and 2027, reflecting expectations of sustained demand.

The global race to build AI data centers is likely to keep pressure on memory supplies. Companies across the sector are preparing for continued shortages and elevated costs. Samsung’s pricing decisions will play a central role in shaping the market over the coming quarters. Buyers may need to adjust strategies to secure sufficient supply in an increasingly competitive environment.