"Adding fuel to the fire"! Reports say Samsung has significantly raised memory and flash prices by as much as 30%.

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After Morgan Stanley and others expressed optimism about the outlook for traditional memory, memory giants have collectively announced price increases!

On Monday, Samsung significantly raised the prices of memory and flash products, with DRAM products rising by as much as 30% and NAND flash prices increasing by 5-10%, citing tight supply and surging demand from cloud enterprises. Competitors such as Micron and SanDisk simultaneously announced similar price hikes, with Micron raising prices by 20-30% and suspending acceptance of new orders.

According to South Korean media Newdaily, Samsung raised prices of LPDDR4X, LPDDR5, and LPDDR5X memory products by 30%, while prices of eMMC and UFC NAND flash products rose by 5-10%. The supply shortage mainly stems from reduced production of old products and increased demand from major cloud service providers.

This round of price hikes reflects a structural transformation in the memory industry. Manufacturers are shifting focus to emerging markets such as AI PCs and next-generation smartphones, leading to a contraction in supply of traditional products. Morgan Stanley predicts that as competition in the HBM market intensifies, traditional DRAM and NAND products are expected to see more sustainable growth by 2026.

Industry Giants Raise Prices Collectively

Samsung is not acting alone. Micron has notified customers that prices will rise by 20-30% and has suspended acceptance of new orders. SanDisk announced a 10% price hike for NAND flash products. This demonstrates that the entire memory industry is under pressure from an imbalance between supply and demand.

The root cause of tight supply lies in a shift of industry focus. As AI PCs and next-generation smartphones adopt the LPDDR5/X standard, manufacturers have reduced production of older products, but capacity for the new standard has not yet kept up with growing demand. DDR4 memory prices have already surged by 50%, making DDR5 a more cost-effective PC solution.

The increase in memory prices will directly impact the costs of consumer electronics and enterprise procurement. As one of the world's largest memory manufacturers, Samsung's pricing strategy often sets the industry trend, and the market worries that tight supply may persist until 2025.

HBM Demand Squeezes Traditional Product Supply

Soaring demand for high bandwidth memory (HBM) has been a key factor driving up prices. Major DRAM manufacturers have all shifted their focus to the AI sector, prioritizing the supply of the latest products to AI accelerator makers such as Nvidia and AMD. This priority adjustment has further tightened the supply of consumer-grade DRAM.

Samsung currently holds a 32.7% market share in DRAM and a 32.9% share in NAND. The company is actively seeking support from Nvidia to promote its HBM products, while accelerating the development of LPDDR6 DRAMs, with the first designs expected to launch later this year.

Morgan Stanley previously pointed out in a research report that the "HBM premium myth" faces challenges, with fierce competition and pricing pressures expected in 2026. With Fed rate cuts expected and the macro environment improving, market funds are shifting from AI-driven HBM to traditional storage segments, with Morgan Stanley particularly bullish on the investment value of traditional DRAM.

The tightening supply-demand structure for DRAM and NAND seems to increase the necessity of price hikes. Citi predicts that next year, DRAM and NAND flash supply will fall short by 1.8% and 4% respectively. Morgan Stanley also forecasts that the NAND supply shortage could reach as much as 8% next year.

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