Prices have increased, you’ll have to pay the difference! The three major storage giants plan to introduce a “short-term contract + post-settlement” model.

Prices have increased, you’ll have to pay the difference! The three major storage giants plan to introduce a “short-term contract + post-settlement” model.

The global memory chip market is undergoing a major transformation in pricing rules.

According to ETNews on Friday, memory giants such as Samsung, SK Hynix, and Micron are implementing a new contract model that not only significantly shortens contract terms to quarterly or even monthly, but also introduces “post-settlement” clauses—meaning that even after delivery is completed, customers still need to make additional payments based on market prices. This change is mainly targeted at major North American tech companies.

This new contract allows suppliers to adjust payments based on market prices after delivery is completed. For example, if the DRAM contract price is 100 won and the market price doubles a year later, the customer must pay an additional 100 won in price difference. This marks a fundamental shift in the memory industry from the traditional fixed-price model to a dynamic pricing mechanism.

Industry sources expect that such supplier-friendly contract terms will continue at least until the second half of 2026, since the upward trend in memory chip prices is expected to persist. Even tech giants like Apple, with enormous purchasing power, cannot avoid this impact; there is still room for further price increases in memory procurement after the first half of 2026. Tight supply and price volatility are reshaping the bargaining landscape of the memory market, with the buyer’s market now completely shifting to a seller’s market.

Fundamental Changes in Pricing Mechanisms, Dramatically Shorter Contract Terms

Traditional memory product pricing models are being overturned. ETNews points out that DRAM and NAND memory products previously had prices set at the beginning of supply contracts, and even if market conditions changed, price adjustments were typically limited to around ±10% during quarterly negotiations.

However, the new contracts introduce “post-settlement” clauses, allowing payments to be adjusted based on market prices even after delivery is completed. In essence, this allows suppliers to capture gains from price increases. This mechanism completely breaks the certainty of fixed-price contracts, shifting all market risk to the buyer.

Aside from changes in payment methods, contract terms are also shortening significantly. ETNews says that although memory buyers seek two-year or longer contracts to ensure stable supply for expanding AI infrastructure, due to limited inventory and price volatility, many contracts have been shortened to quarterly or even monthly terms.

Industry insiders told ETNews that these supplier-friendly agreements may last at least until the second half of this year, as growth in memory prices is expected to remain strong. The shortening of contract terms allows suppliers to adjust prices more frequently based on market conditions, further strengthening their pricing dominance.

Tech Giants Also Struggle to Escape

Even tech giants with vast purchasing power are not immune to this wave of price hikes. ZDNet cites industry sources saying that while Apple typically signs long-term memory supply agreements, the current memory shortage means pricing is only locked in through the first half of 2026, leaving room for further price increases when the new flagship iPhone 18 is launched later this year.

According to ZDNet, Samsung and SK Hynix raised LPDDR prices for iPhone shipments in the first quarter, with Samsung increasing prices by more than 80% quarter-on-quarter and SK Hynix by about 100%. This shows that even super buyers like Apple have lost their traditional bargaining advantage amid current tight supply.

Under limited supply, major memory manufacturers are tightening control. Nikkei Asia reports that Micron, SK Hynix, and Samsung are strictly vetting customer orders, demanding disclosure of final customers and order quantities to prevent hoarding or overbooking, which might further disrupt the market.

This review mechanism shows that suppliers not only dominate in pricing, but also wield greater influence in supply allocation, further consolidating the current seller’s market pattern.

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