Samsung has reportedly bumped up the prices of its DRAM & NAND Flash products by a staggering 30% due to tighter supply.
Samsung DRAM Prices Bumped Up By 30%, NAND Flash By Up To 10%, As Company Reports Tighter Supply
According to Korean news outlet, Newdaily, Samsung has bumped up the prices for its DRAM and NAND Flash products. The reason for this price bump is attributed to a tighter supply, which is caused by reduced production of older products and an increased demand from larger cloud enterprises. At the same time, Micron & SanDisk have also announced price bumps for their respective products.
As for the affected products, Samsung will be raising the prices of its DRAM products by up to 30% while NAND flash will see a 5-10% rise in prices. The affected DRAM products include LPDDR4X, LPDDR5, and LPDDR5X memory, while NAND Flash products include eMMC and UFC products.
As mentioned above, Micron has also notified its customers about a 20-30% rise in prices while not taking any new orders. Meanwhile, SanDisk has announced a 10% price bump on its NAND flash products.
As Samsung and other DRAM/NAND flash manufacturers gear up for new market segments such as AI PCs and next-gen smartphones, the demand for older products has been reduced a lot, and production for new standards isn't keeping up with the demand. We have seen several new "AI PCs" adopt the new LPDDR5/x standard, which offers lower power while retaining the performance aspects of standard DDR memory.
With that said, the reduced production of older products such as DDR4 memory has also led to a price bump of up to 50%. This makes DDR5 a more cost-effective solution for PCs. HBM demand is also on the rise, with all major DRAM manufacturers now on board the AI train, offering their latest and greatest to AI accelerators from NVIDIA, AMD, etc. This prioritization of HBM over consumer-DRAM leads to a tighter supply and an increase in prices.
Currently, Samsung holds a 32.7% DRAM and 32.9% NAND market share. The companies offer all kinds of solutions, and the company has been trying really hard to get the backing of NVIDIA to utilize its HBM products. The company is also accelerating its LPDDR6 DRAM development with a possible launch of the first designs expected later this year.
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