AI demand continues to provide support; after doubling in Q1, Samsung's DRAM prices rise another 30% in Q2.

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Samsung Electronics has significantly increased DRAM prices for two consecutive quarters, reflecting the profound reshaping of the memory chip market driven by the AI infrastructure investment boom.

According to Korea’s "Electronic News," Samsung Electronics has completed negotiations and signed supply contracts with major clients for second-quarter DRAM supply, with price increases of about 30% over first-quarter levels. This price hike covers high-bandwidth memory (HBM) as well as general DRAM products for servers, PCs, and mobile devices, representing the average overall increase. Previously, in the first quarter, Samsung raised the average DRAM price by about 100%.

A person familiar with the matter said, "There are still a large number of customers rushing to lock in DRAM supply in advance, enabling the company to further raise prices based on the first quarter," and pointed out that "with AI-driven demand at the core, there are no signs of price stabilization or decline." Based on this calculation, using the DRAM price at the beginning of 2025 as a benchmark, after two rounds of price hikes, the supply price for the second quarter is already 2.6 times the benchmark price.

The market’s assessment of "today is the cheapest" has not changed, but the rate of increase has slowed—the second quarter's rise is significantly lower than the doubling in the first quarter. Supply and demand dynamics in the third quarter will be a key variable in determining the direction of DRAM prices.

Root Cause of Price Rise: HBM Expansion Squeezing General DRAM Supply

This round of sustained DRAM price increases is directly driven by explosive growth in demand for AI accelerators.

As large tech companies accelerate the construction of AI server infrastructure, demand for HBM is simultaneously climbing rapidly. Major memory manufacturers, including Samsung, are shifting production capacity towards HBM, resulting in tighter supply for general DRAM and sharply rising prices.

Another industry insider stated, "Large tech companies have not changed their intentions to expand AI server and other infrastructure; demand for high-performance DRAM and HBM remains stable," adding "the competition to secure DRAM supply through long-term contracts is becoming increasingly fierce."

Clear Differentiation Between High-End and Older Products

The price rise trend is not uniform across the board.

According to DRAM Exchange, a Taiwan market research firm, as of the end of March, the average fixed transaction price for PC DRAM products (DDR4 8Gb) was flat compared with the previous month, and price increases for some older products have entered a phase of temporary calm.

However, prices for new-generation DRAM such as DDR5 and server memory products continue to steadily rise, as market demand for high-end products remains strong. The industry generally believes the price increase cycle for high-spec products is not yet over.

SK Hynix and Micron Expected to Follow With Synchronized Price Increases

As the world’s largest DRAM producer, Samsung Electronics has taken the lead in locking in a 30% price increase, which is expected to have a ripple effect throughout the industry.

Reports indicate SK Hynix and Micron will advance second-quarter DRAM supply at similar levels and have engaged in detailed negotiations with clients regarding the price increases and contract terms.

The synchronization among the three major memory manufacturers means downstream buyers will face increased price pressure and less room for negotiation.

The biggest current uncertainty in the market centers on the third quarter.

DRAM production capacity at Samsung Electronics and other leading manufacturers has yet to see a significant jump, meaning AI-driven demand will remain the key factor affecting price direction.

If AI infrastructure investment maintains its current intensity while supply expansion lags, the upward price trend is likely to continue; conversely, if demand softens at the margin, the price increase cycle may be tested.

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