In a move that signals a turning point for the semiconductor industry, Samsung Electronics is raising prices for its memory chips this quarter. This decision aligns with similar actions from competitors Micron and Kioxia, all pointing to a market grappling with supply constraints and unexpectedly strong demand.
The price adjustments are significant, with certain DRAM chips used in advanced smartphones and AI PCs increasing by up to 30%. The surge is fueled by a perfect storm of factors: major cloud companies are ordering more data center storage, while production cuts on older chip models have created shortages. This combination of high demand and limited supply is pushing prices upward across the board.
For Samsung, which holds a leading share of the global memory market, these increases are a welcome shift. After a prolonged period of low prices, the hikes are expected to provide a substantial boost to its semiconductor division’s earnings in the coming months, with some analysts predicting a strong rebound in profitability.
