Samsung reports Q3 DRAM to rise another 20%! Three price increases in a year, AI crowding out capacity spreads to smartphones and PCs.

Samsung Electronics is reportedly planning to raise the average selling price of DRAM (Dynamic Random Access Memory) in the third quarter of this year by up to 20% compared to the previous quarter, marking the third price hike within a year. Multiple consumer electronics end-product manufacturers and industry insiders have confirmed that Samsung has been notifying customers through oral quotations since June, although the company has not yet made an official announcement.
(Previous Context: Lenovo Comes Clean: Memory Is Super Expensive and Not Going Back! Consumers Will Have to Pay)
(Background Addition: Micron Q3 Earnings Preview: AI Memory Super Cycle Set to Explode)

Key Takeaways

• Samsung reportedly aims to raise DRAM prices by up to 20% in Q3 from the previous quarter, with LPDDR increases potentially exceeding 20%.
• This marks the third consecutive quarter of price hikes: 90% in Q1, another 50-60% in Q2, and a further 20% targeted in Q3.
• TrendForce estimates the actual Q3 contract price increase will narrow to 13-18%, slightly below Samsung's quoted target.

Samsung Electronics' latest price hike has been leaked before the official process was completed. Several executives at consumer electronics end-product manufacturers confirmed that their companies received oral notices from Samsung in June regarding the DRAM price increase. Another industry veteran also stated that the news of Samsung's planned 20% DRAM price hike in Q3 is true, and that the company has already informed some customers through oral quotations. Samsung has not yet made an official public announcement, and the matter remains a market rumor.

AI Devours Memory

The root of this price surge is AI. The three major manufacturers — Samsung, SK Hynix, and Micron — have shifted approximately 93% of their production capacity to HBM (High Bandwidth Memory) used in AI data centers, significantly squeezing the supply of traditional DRAM.

HBM demand is estimated to grow 70% year-over-year in 2026, and producing one bit of HBM consumes about three times the wafer capacity compared to DDR5. New capacity will not come online until at least 2027. Announcing three price hikes within a year, Samsung's move is not a probe but rather pushing the cost of AI shortages down the supply chain.

Price Hikes Will Pass to Phones, PCs, But Manufacturers Say Impact is Limited

A surge in upstream component prices will eventually be reflected in device retail prices. One end-product manufacturer executive believes that while price hikes will indeed suppress some market demand, current consumer electronics prices are generally not high, so even with increases, it is unlikely to significantly affect consumer purchasing decisions.

However, the general consensus is that Samsung's 20% target is a negotiation starting point. The actual Q3 DRAM contract price increase may narrow to 13% to 18%, slightly below Samsung's asking price. Exactly how much the paying customers will ultimately accept remains undecided.

Frequently Asked Questions

Why is Samsung raising DRAM prices?

Samsung and the other two major manufacturers have shifted about 93% of their capacity to HBM for AI, squeezing traditional DRAM supply. Combined with a memory shortage that could last until 2027, contract prices are being pushed up. The third quarter marks the third consecutive quarter of price increases.

Will DRAM price hikes make phones and computers more expensive?

Upstream memory price increases may be passed on to device prices, but end-product manufacturers believe consumer electronics prices are currently low, so the impact on purchase propensity is limited. TrendForce estimates the actual Q3 contract price increase at about 13% to 18%.