Soshyant

Samsung to Use 50% Micron DRAM in Galaxy S26 — Pricing Negotiations a Key Variable Samsung Electronics has been found to be producing the initial batch of its Galaxy S26 series — set to launch on the 26th — with Micron DRAM comprising 50% of the mix. Samsung's Mobile eXperience (MX) division has managed to secure volumes more easily amid the recent memory supply shortage, but has been unable to fend off component price pressure. The DS (Device Solutions) division has already doubled the price of LPDDR5X supplied to Apple, and is unlikely to offer parts to MX at a discount either. With Micron also signaling steep price hikes, significant pressure on MX's profitability is expected, which is predicted to drive price increases for the Galaxy S26 as well. A source familiar with Samsung's internal affairs said, "Samsung's MX division is producing the Galaxy S26 series initial batch with LPDDR5X from the DS division and Micron at a 50/50 split," adding, "production volumes beyond the initial batch have not yet been determined, so there is effectively no concept of a 'first vendor' at this point." The mobile DRAM being supplied this time has seen prices rise across the board for both Samsung DS and Micron products, though pricing is understood to have been set at levels below what each company charges competitors. In DS's case, the price increase is reportedly smaller than what it is charging Apple for iPhone DRAM. For the preceding Galaxy S25 series, Micron DRAM was used exclusively for the first three months after launch. At the time, Micron's products were assessed as superior to Samsung DS's offerings in terms of performance and yield. DS subsequently improved quality, rapidly boosting its mobile DRAM competitiveness, and MX readjusted its sourcing mix. The Galaxy S25 series ultimately settled at a supply structure of roughly 60% DS and 40% Micron. An industry source noted, "Up until about two years ago, DS's consumer DRAM had intermittent recall (refund) issues, but quality has improved significantly through design margin enhancements." Starting with the Galaxy S26 series, however, a conventional memory supply shortage has compounded the situation, making volume procurement MX's top priority. The division engaged in intense negotiations with both DS and Micron during Q4 last year, ultimately settling on a 50/50 supply split for the initial batch. Both suppliers are currently providing LPDDR5X based on the 1b process node. Micron has also submitted LPDDR5X samples based on its 1-gamma (γ; equivalent to 1c) process to MX, but adoption was deferred as it was deemed premature for actual deployment. Instead, for this initial batch, Micron is supplying a product with modestly refined circuit linewidths compared to the LPDDR5X used in the Galaxy S25 series, achieving a 15% improvement in productivity — an opportunity for Micron to enhance profitability. With Galaxy Unpacked and the S26 reveal approaching, MX is reportedly relieved to have secured initial memory volumes smoothly. The supply mix beyond the initial batch is still under negotiation, though industry observers believe a similar structure is likely to be maintained. Experts, however, view pricing negotiations as the critical issue. Both DS and Micron plan to push for substantial LPDDR5X price increases in post-initial-batch negotiations. MX plans to partially offset cost pressures by raising Galaxy S26 series pricing and incorporating its in-house Exynos 2600 application processor (AP) in roughly 30% of units. Even so, the consensus is that the steep memory price trajectory will be insufficient to fully relieve profitability pressure. Samsung's DS division plans to push through with its price hike stance despite being part of the same corporate family. It has already shifted from long-term agreements (LTAs) to quarterly contracts with MX to maximize profitability. Apple — MX's smartphone rival — has also been confirmed to have secured DS's LPDDR5X for the iPhone 17 series at double the previous price. Apple recently held an emergency meeting with DS to negotiate first-half delivery volumes in order to stabilize memory procurement. A semiconductor industry source said, "Samsung's DS division originally strategized to raise LPDDR5X prices for Apple's iPhone by about 60%. However, at the first negotiation table, they opened with a 100% increase (intending to converge toward 60%), and Apple accepted it on the spot — so that became the final price. That's how desperate smartphone makers are to secure memory inventory." Micron is also preparing to notify MX of elevated pricing. With limited production capacity, Micron is expected to push the highest mobile DRAM price increases among the three major memory makers. Even if Samsung MX declines, Micron judges that demand from other customers is more than sufficient. Samsung Electronics CEO and DX Division head Roh Tae-moon held an emergency meeting with Micron CEO Sanjay Mehrotra on the first day of CES 2026 to discuss memory supply issues. An industry source explained, "The pricing negotiations following the initial batch will determine the share that DS and Micron each hold within Samsung MX's supply chain. The shortage is so severe that even if MX reduces purchase volumes, neither DS nor Micron would have any reason to be concerned." Meanwhile, Samsung's MX division will hold its "Galaxy Unpacked 2026" event at 3:00 AM KST (Korean time) on the 26th in San Francisco, California, to unveil the Galaxy S26 series. Domestic pre-orders will run from the 27th — the day after Unpacked — through March 5, with the official launch scheduled for March 11. $MU $AAPL