Memory makers are preparing for another round of price increases, with Samsung Electronics aiming to lift DRAM average selling prices by as much as 20% in the third quarter compared to the previous period.
The move reflects continued supply pressure across the memory market, driven largely by sustained investment in AI infrastructure. Industry sources indicate that while the pace of increases may moderate, pricing power — and profitability — are expected to remain elevated into next year.
According to sources familiar with the negotiations, Samsung is currently in discussions with customers to secure the targeted increase. The company has already posted strong sequential gains this year, with DRAM ASP(average selling price) rising to the low-90% range in the first quarter and an estimated 50–60% increase in the second quarter.
AI demand continues to reshape pricing dynamics
The underlying driver remains unchanged. Global hyperscalers are continuing to aggressively scale AI infrastructure, tightening supply not just for high-end memory like HBM but also for conventional DRAM.
That includes server DRAM and LPDDR, the latter increasingly used in AI inference workloads across both data centers and mobile devices.
Samsung’s pricing trajectory stands out against peers. Industry observers point to its higher exposure to general-purpose DRAM, a segment known for greater price volatility, as a key factor enabling more aggressive price adjustments.
SK Hynix, by contrast, has a larger share of HBM in its portfolio. That mix tends to stabilize pricing but can limit upside in broader DRAM ASP movements. As a result, its third-quarter increase is expected to be more muted.
One industry official said Samsung is taking a particularly assertive stance in current negotiations, including plans to raise LPDDR prices by more than 20%. Whether customers will fully accept those terms remains uncertain.
Long-term contracts shift market stability
Despite rapid price increases over the past two quarters, signs of stabilization are emerging — not through weaker demand, but through structural changes in how memory is sold.
Long-term agreements are becoming more common. These contracts typically lock in volumes and include price floors, effectively guaranteeing suppliers’ margins.
Micron recently disclosed that it has signed 16 such agreements with customers, signaling a broader shift toward predictable supply relationships. Buyers appear willing to commit, reflecting expectations that tight supply conditions will persist over the medium term.
This shift could limit downside risk even if spot pricing begins to cool.
Profitability remains the priority
The current strategy across memory vendors is clear: prioritize margins over volume growth.
Even as the rate of price increases slows, the combination of constrained supply, AI-driven demand, and structured contracts is likely to sustain high profitability levels.
Developments around large-scale AI infrastructure players reinforce that outlook. Meta’s reported expansion of its annual AI investment budget — up to $145 billion — underscores continued demand for compute and memory capacity.
Its exploration of monetizing internal infrastructure has raised questions about future demand, but industry insiders view it more as an efficiency play than a sign of reduced spending.
That leaves one key variable unresolved. If customers begin pushing back on pricing in the second half, the next phase of the cycle may depend less on supply shortages — and more on how much leverage memory makers can actually maintain at the negotiating table.
