X

Intel cited rising substrate, T-glass, and memory costs as headwinds to gross margin in the second half of the year.

Samsung & SK Hynix to Sharply Raise DRAM Prices in Q2… Surge Expected to Continue Through Next Year The world's two largest DRAM manufacturers, Samsung Electronics and SK hynix, have informed their customers of plans to significantly raise DRAM prices again in Q2. With DRAM demand surging on the back of expanding global AI investment far outpacing the two companies' supply capacity, some observers project that cumulative price increases could reach 130% for the full year. According to semiconductor industry sources on the 27th, Samsung Electronics and SK hynix have notified customers of Q2 DRAM supply price increases and have begun price negotiations. While the magnitude of increases varies by customer, non-major clients are reportedly being told they must accept substantial price hikes to secure DRAM volumes. An industry source said, "Samsung Electronics' current production capacity can only cover about 60% of continuously surging DRAM demand," adding, "Customers are also more focused on securing volumes than resisting price increases, so there should be no difficulty pushing through significant hikes." Some in the industry suggest that certain customers may need to accept price increases of more than double their previous contract prices to receive DRAM allocations. The DRAM price surge that began in H2 last year amid the AI infrastructure buildout frenzy has completely upended traditional trading practices, widening the purchasing power gap between large and small-to-mid-sized customers. Typically, global big tech companies such as NVIDIA and Apple hold structural advantages in DRAM procurement. Big tech firms purchasing DRAM in large volumes negotiate contracts on a quarterly or semi-annual basis, setting volume and price ranges with final supply prices adjusted to market rates at the time of delivery. Samsung Electronics and SK hynix also extend preferential pricing to big tech customers who purchase at scale regardless of market cycles, in order to maintain their supply chain relationships. However, small-to-mid-sized customers have traditionally contracted on a monthly basis reflecting spot market prices. Since Q4 last year, when DRAM prices began surging, Samsung and SK hynix have shifted these customers to quarterly volume-based "forward commitment" contracts that favor the suppliers. As a result, Samsung and SK hynix have presented steep price increase proposals to customers whose contracts come up for renewal in Q2. Another industry source explained, "Contract volumes for both large and small customers will see price increases reflecting market prices," adding, "However, when existing contracts expire and new ones are signed, the absence of a previously agreed price range means the magnitude of increases will inevitably be even greater." Analysis suggests DRAM prices could more than double over the course of this year. On the same day, global market research firm Gartner released a forecast projecting that memory prices, including DRAM and solid-state drives (SSDs), will rise 130% by year-end. According to DRAMeXchange, DDR4 8Gb product prices, which stood at around $1.30 in March last year, surged to $9.30 by the end of last year, and have climbed a further ~40% to $13.00 as of February this year. The industry views the price surge not as a temporary supply-demand imbalance but as a structural problem where supply chronically cannot keep pace with demand. This is driven by the AI industry's transition from simple search-based applications to "agentic AI" that replaces specialized human functions. As agentic AI is adopted across enterprises, governments, and even personal smartphones, demand for DRAM—which supports inference and computation—continues to explode. Meanwhile, the three major memory makers' DRAM production capacity this year is expected to remain flat or increase by only about 7% (SK hynix) compared to last year. An industry source said, "As companies adopt not just one but two or three AI models simultaneously for different use cases, DRAM demand is growing even further," adding, "Volumes through next year are already sold out, so the price increase trend is expected to continue."

Minimax is the stock to buy to ride OpenClaw/MoltBook $100.HK

$MU Samsung to raise NAND prices by 100% in Q1 as supply can't keep up with demand. SK Hynix is ​​also expected to see a similar increase. This is just the beginning of memory industry paradigm shift. Bullish 🔥