Samsung is set to increase prices for its DRAM and NAND flash memory in the fourth quarter, following similar moves by SanDisk and Micron, according to a report from South Korean periodical New Daily.
The company has informed partners of the upcoming price adjustments, with LPDDR4X, LPDDR5, and LPDDR5X memory prices expected to rise by 15 to 30 percent. Additionally, prices for NAND-based storage, such as eMMC and UFS, will increase by 5 to 10 percent. As of the second quarter of this year, Samsung held 32.7 percent of the global DRAM market and 32.9 percent of the NAND flash market.
The price increases are attributed to rising demand from multiple sectors, including holiday shopping driving demand for smartphones, tablets, and high-end PCs, as well as growing need for low-power, high-performance memory from AI hardware manufacturers like Nvidia for their premium products. Industry sources cited in the report state that additional price increases are “inevitable.”
Analysts project a shortfall in memory supply, with Citigroup estimating that DRAM production will fall 1.8 percent short of global demand, while NAND production will be 4 percent below demand. Morgan Stanley forecasts that the NAND supply could be as much as 8 percent below demand next year.
The shift in production focus toward next-generation DDR5 and HBM products has led to a sharp drop in the production of older DDR4 and LPDDR4X chips, resulting in a reduction in supply. This caused the average monthly price of DDR4 to increase by 50 percent in July, making it more expensive than DDR5.
Samsung had originally planned to cease production of DDR4 and LPDDR4X RAM by June 2025 but reversed this decision due to unexpectedly strong demand. While the price increases across major manufacturers are seen as a positive development for industry profitability, they are expected to have a negative financial impact on enthusiasts and DIY PC builders.
