Samsung Increases DRAM and NAND Prices by Up to 30% According to Reports

Samsung has announced significant price increases for its DRAM and NAND Flash products, with some prices climbing as much as 30%.This move comes in response to a tightening supply chain.

Supply Chain Issues Lead to Price Hikes for Samsung DRAM and NAND Flash Products

As reported by the Korean news outlet Newdaily, this substantial price increase is primarily attributed to decreasing production rates of older components and a marked rise in demand from major cloud service providers. Concurrently, Micron and SanDisk are also implementing price hikes on their respective memory products.

The impending price adjustments will see Samsung increase DRAM prices by up to 30%, while NAND Flash products may experience a 5-10% rise. Key products affected in this price adjustment include LPDDR4X, LPDDR5, and LPDDR5X for DRAM, as well as eMMC and UFS variations of NAND Flash.

Samsung Reportedly Increases DRAM & NAND Prices — Image Credits: Samsung

Micron has informed its customers of potential price hikes ranging from 20-30%, alongside a temporary pause on new orders. Similarly, SanDisk is set to increase its NAND Flash product prices by 10%.

As the industry shifts focus towards emerging market segments like AI-powered PCs and next-generation smartphones, the diminishing demand for outdated products is evident. In particular, production lag for the latest standards is exacerbating the situation. The introduction of “AI PCs”utilizing the LPDDR5/x standard has showcased improved energy efficiency while sustaining performance levels comparable to traditional DDR memory.

Moreover, the decline in older product manufacturing, such as DDR4 memory, has resulted in price spikes of up to 50%.This scenario makes DDR5 memory a more appealing option for PC builders. Additionally, the demand for High Bandwidth Memory (HBM) is surging, as major DRAM producers align their offerings with AI advancements from companies such as NVIDIA and AMD. The prioritization of HBM in production over consumer-grade DRAM has further tightened supplies and catalyzed price increases.

Currently, Samsung commands a substantial market presence, holding a 32.7% share of the DRAM sector and a 32.9% share of the NAND market. The company is actively seeking collaboration with NVIDIA to enhance its HBM product line while expediting the development of LPDDR6 DRAM, with the first iterations expected to launch in the near future.

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