Samsung raises memory chip prices by up to 60% amid AI demand surge and global shortage
Samsung Electronics, the world's largest memory chipmaker, has raised the contract prices of certain memory chips by as much as 60% this month compared to September. This sharp price increase is a direct result of the global race to build AI data centers, which has created an intense demand and subsequent shortage of chips. The news prompted a sharp rally in shares of Samsung, SK Hynix, and U.S. chipmakers like Micron Technology.
The soaring prices for these memory chips, which are mainly used in servers, are expected to increase costs for large companies building data infrastructure and threaten to raise the cost of other products like smartphones and computers.
Price Increase Details
The price hikes were confirmed by industry sources, with some server makers and data center builders accepting that they will not receive nearly enough product, leading to "extreme" price premiums.
Key price increases for DDR5 memory chip modules (which temporarily store data and manage rapid transfer) include:
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32GB DDR5: Jumped to $239 in November, up from $149 in September (a 60% increase).
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16GB DDR5: Lifted by about 50% to $135.
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128GB DDR5: Lifted by about 50% to $1,194.
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64GB DDR5 and 96GB DDR5: Prices have gone up by more than 30%.
The price increase follows a decision by Samsung to delay a formal announcement of pricing for supply contracts in October, a process that is typically announced monthly.
Impact and Future Outlook
The current chip crunch has led to panic buying by some customers. China's top contract chipmaker SMIC noted that the memory chip shortage has caused customers to hold back orders for other necessary chip types. Chinese smartphone manufacturer Xiaomi also previously warned that the surging prices have raised the cost of making phones.
The shortage is a significant boon for Samsung, which has, until recently, lagged rivals in offering advanced AI chips. Analysts project that Samsung is likely to raise quarterly contract pricing by 40% to 50% in the October–December period, which is higher than the average 30% expected for the wider industry.
In response to the long-term AI-driven demand, Samsung announced it will build a new chip production line at its plant in South Korea. The strong demand is pushing many customers toward long-term agreements for supply in 2026, or even for 2026 and 2027 combined.
