Samsung Electronics is engaging in tough price negotiations with customers, aiming to raise the average selling prices of mainstream DRAM and LPDDR products in the third quarter by more than 20%—following price increases of 90% and 50% in the previous two quarters. Sustained investment in AI infrastructure and the acceleration of long-term supply agreements locking in prices have created multiple structural tailwinds, positioning memory manufacturers to maintain high profitability into next year.
Samsung Electronics is leading a new wave of memory price hikes, bolstered by sustained investment in AI infrastructure.
According to ZDNet on Friday, citing industry sources in Korea, Samsung Electronics is currently negotiating with customers over the average selling price (ASP) of mainstream DRAM for the third quarter, targeting an increase of up to 20% compared to the previous quarter. The company also plans to raise prices for low-power DRAM (LPDDR)—used in both servers and mobile devices, where supply bottlenecks persist—by more than 20%, reflecting its firm stance in pricing negotiations.
Supply shortages continue. Ongoing investments by global tech giants in AI infrastructure have driven up overall demand for server DRAM, high-bandwidth memory (HBM), and LPDDR, making it unlikely that the tight supply situation will ease in the near term. Industry insiders noted that although the pace of future price increases may moderate, memory manufacturers like Samsung Electronics are expected to maintain elevated profitability into next year.
Samsung Leads Peers in Price Hike Timing
Samsung Electronics’ DRAM ASP increases this year have significantly outpaced those of its peers. According to industry data, its DRAM ASP rose approximately 90% quarter-over-quarter in the first quarter, by about 50% to 60% in the second quarter, and it is targeting a roughly 20% increase for the third quarter.
In contrast, SK hynix—which has a higher proportion of HBM production—is expected to implement smaller price increases than Samsung. Industry consensus attributes this divergence to differences in product mix: Samsung produces a larger share of mainstream DRAM, which exhibits greater price elasticity, and has adopted a more aggressive stance in driving price hikes.
A semiconductor industry source stated, "Samsung Electronics has taken a very firm position in third-quarter price negotiations, but it remains uncertain whether customers will fully accept these terms."
Long-Term Supply Agreements Anchor Price Floors
Even if the momentum of short-term price hikes slows, DRAM prices remain structurally supported in the medium term. Industry experts note that the share of long-term agreements (LTAs) between key customers and memory suppliers continues to expand, effectively limiting downside price risks.
Micron disclosed at its earnings call at the end of last month that it has signed a total of 16 long-term supply agreements with customers. These agreements reportedly include binding purchase volume commitments and establish price floors designed to safeguard high profit margins—a move reflecting customers’ expectations of persistently tight memory supply over the medium to long term.
Meta's cloud business plan does not constitute bearish demand sentiment.
Previously, some market participants speculated that Meta’s move to commercialize its cloud services and sell excess internal computing capacity externally could signal that its AI production capacity is approaching saturation, potentially exerting downward pressure on memory demand.
However, in April this year, Meta raised its full-year AI infrastructure investment guidance from the previous range of $115–135 billion to $125–145 billion, maintaining its trajectory of continued capital expenditure expansion.
Another industry insider stated: "A more accurate interpretation is that Meta’s move aims to utilize its internal computing resources more efficiently, rather than signaling excess capacity. Factors such as an expanded price floor under long-term agreements (LTAs) and ongoing HBM price renegotiations make a significant downturn in the DRAM market next year highly unlikely."
Editor/KOKO