| | | Samsung, SK hynix Reportedly Lift Memory Prices Up to 30%; Long-Term Supply Deals in Play
trendforce.com
The memory supercycle appears unstoppable, and memory giants are already responding by hiking prices. According to the Korean Economic Daily, Samsung and SK hynix have raised DRAM and NAND flash prices by up to 30% for Q4, passing the new rates on to customers.
Notably, analysts cited in the report predict that the AI-driven memory supercycle will be longer and stronger than past boom periods. The supply shortage, as per the Korean Economic Daily, could persist for three to four years. This is reportedly driven by several overlapping factors: new investments in AI servers worth hundreds of trillions of won, ongoing memory upgrades for general-purpose servers, and rising demand for on-device AI.
Thus, as per the Chosun Daily, several leading international electronics and server companies are stockpiling memory, negotiating long-term supply deals with Samsung and SK hynix. The report notes that, with concerns over DRAM shortages, some U.S. and Chinese electronics firms, along with data center operators, are reportedly exploring 2–3 year mid-to-long-term contracts with the two Korean memory giants.
The report suggests that companies typically sign DRAM contracts on a quarterly or annual basis to maintain inventory flexibility. However, with forecasts pointing to a continuing shortage of general-purpose DRAM, they are increasingly moving to secure additional supply in advance, the report adds.
DRAM Supply Tightens as HBM Demand Skyrockets
DRAM prices are climbing partially due to tight supply, a trend largely driven by surging HBM demand, since HBM consumes more than three times the wafer capacity of standard DRAM, Korean Economic Daily suggests, citing remarks from Sumit Sadhana, Chief Business Officer (CBO) at Micron.
It makes sense for memory manufacturers to prioritize HBM production, given its strong profitability. According to the Korean Economic Daily, 12-layer HBM4 products set to ship next year are expected to fetch $500 each (around 700,000 won)—over 60% higher than the 12-layer HBM3e, priced at roughly $300.
However, the report highlights that as AI investment shifts from high-volume data training to inference, demand is climbing not only for HBM but also for general-purpose DRAM, which offers an edge by processing data faster and consuming less power than HBM. |
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