Samsung increases memory price increase to 60%, increasing pressure to build large AI databases

Due to the massive construction of global AI databases, which has led to a surge in demand for memory and a shortage in the supply of memory chips, Samsung Electronics announced yesterday that the prices of some memory chips will increase by 60%, which is expected to increase the pressure on database construction again.

"Reuters" quoted two internal sources as saying that after Samsung Electronics postponed announcing price information during October, it officially announced the price increase yesterday.

In addition to affecting the large number of AI databases currently under construction, the increase in memory prices is also expected to increase the prices of related products such as mobile phones, tablets, laptops and PCs.

Tobey Gonnerman, president of Fusion Worldwide, a global open market distributor of electronic components, pointed out that major technology companies are currently facing a problem of completely insufficient memory shipments, and this may be a bigger problem than the price increase itself.

Samsung Electronics raised the price of 32GB GDDR5 to US$239 from US$149 in September. The prices of 16GB and 128GB also increased to US$135 and US$1,194. In addition, the prices of 64GB and 96GB also increased by 30%.

Soaring prices and insufficient shipments will affect the purchasing decisions of major technology companies. China's SMIC said that some customers have switched to purchasing other types of chips, or even suspended purchasing in response. Xiaomi also said that memory prices will force the company to increase the prices of its products.

TrendForce stated that Samsung Electronics may increase the price of the purchase contract signed in the fourth quarter by 40 to 50%, 30% higher than the estimate. The price adjustment will be reflected in various electronic products and servers launched in 2026 and 2027.

However, price increases are not a bad thing for Samsung. Jeff Kim, head of research at KB Securities, a Korean investment bank, pointed out that because Samsung is temporarily lagging behind competitors SK Hynix and Micron in memory chip technology with strong AI demand, but because it is still the world's largest supplier, while it is gradually transferring supply to AI-related manufacturers, this period of shortage has given Samsung stronger bargaining power to maintain memory profits and allow technology to catch up with competitors as soon as possible.

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