Samsung Electronics is reportedly seeking to raise average DRAM prices by up to 20% in the third quarter from the previous quarter. If carried through, it would mark the company’s third DRAM price increase within a year. Several consumer electronics executives said Samsung had already informed some customers through verbal quotations in June, though the company has not issued a formal public announcement.
Third straight quarter of price increases
Market chatter indicates the planned increase would cover mainstream DRAM, while LPDDR could see gains above 20%. The latest move would extend a sharp pricing cycle already seen this year: DRAM prices reportedly rose 90% in the first quarter, then another 50% to 60% in the second quarter, with Samsung now aiming for a further 20% increase in Q3. The plan has not been officially finalized, but accounts from device makers and industry sources largely point in the same direction.
AI demand is absorbing memory production capacity
The main driver is AI-related demand. According to the report, Samsung, SK hynix, and Micron have shifted about 93% of their production capacity toward HBM used in AI data centers, leaving significantly less room for conventional DRAM output. HBM demand is projected to grow 70% year over year in 2026, and each bit of HBM requires roughly three times the wafer capacity needed for DDR5. New capacity is not expected to come onstream in meaningful volume until 2027.
That supply imbalance is now feeding into contract negotiations. In practical terms, memory makers are passing AI-driven tightness down the supply chain.
Phone and PC makers may face higher costs
As a core component in smartphones and PCs, DRAM price increases usually filter into device costs. One executive at a downstream manufacturer said higher component prices could weigh on part of the market, but added that overall consumer electronics prices remain relatively low, so the effect on buying decisions may be limited.
Still, the market does not expect Samsung’s full target price to be accepted across the board. TrendForce estimates actual DRAM contract prices in the third quarter may rise by around 13% to 18%, slightly below Samsung’s reported asking range. The final numbers will depend on how negotiations with customers develop.