TL;DR
Major memory suppliers are reallocating capacity to high-margin AI server DRAM and HBM, tightening supply for consumer devices. Analysts and market trackers warn of steep price rises—reports suggest as much as a 70% increase for server memory in early 2026, following large gains in 2025.
What happened
Reports indicate Samsung Electronics and SK hynix plan to raise server memory prices by up to 70% in the current quarter, a move that would add to roughly 50% increases seen in 2025 and could nearly double prices by mid-2026. The three largest memory producers—Samsung, SK hynix and Micron—are shifting wafer capacity toward server DRAM and high-bandwidth memory (HBM) for AI datacenters, limiting availability of general-purpose DRAM for PCs and smartphones. Market trackers such as TrendForce say conventional DRAM already surged 55–60% in a single quarter, and they forecast server DRAM to climb by more than 60% in Q1 2026. Industry research firm IDC described the situation as an "inflexion point," with demand from hyperscalers materially outpacing supply and supply growth for DRAM and NAND forecast to lag normal historical rates.
Why it matters
- Consumer devices like PCs and smartphones may face tighter supply and upward price pressure as wafer allocation shifts to AI server chips.
- Datacenter operators and cloud providers are driving demand, which is reshaping manufacturing priorities and industry economics.
- Memory price shocks can lift profits for dominant suppliers while increasing costs for hardware makers and potentially feeding into wider inflation.
- Extended shortages could create knock-on effects across hardware supply chains that may persist into 2027, according to industry analysts.
Key facts
- Korea Economic Daily reported Samsung and SK hynix planning up to a 70% server memory price increase this quarter.
- Combined with roughly 50% increases in 2025, reported moves could nearly double some memory prices by mid-2026.
- TrendForce reports conventional DRAM rose 55–60% in a single quarter and forecasts server DRAM will climb by more than 60% in Q1 2026.
- Samsung, SK hynix and Micron dominate global memory production and are reallocating advanced capacity toward server DRAM and HBM.
- Supplier inventories are falling and shipment growth depends on wafer output increases, according to TrendForce.
- IDC expects DRAM and NAND supply growth to be about 16% and 17% respectively this year, below historical norms.
- Shares in major memory firms rose sharply amid the squeeze: Micron surged ~240% last year, Samsung more than doubled, and SK hynix's market cap nearly quadrupled.
- Samsung's calendar Q4 operating profit was forecast to climb ~160%, while SK hynix and Micron were expected to show doubled profits in upcoming earnings disclosures.
- Economists warned that heavy AI infrastructure investment and higher memory prices could contribute to broader inflationary pressures.
What to watch next
- Official price announcements and guidance from Samsung, SK hynix and Micron over the coming quarter.
- Quarterly earnings reports for Samsung, SK hynix and Micron for updated profit and revenue figures tied to memory pricing.
- TrendForce and IDC updates on supplier inventories, wafer output growth and forecasts for DRAM and NAND supply.
- Impact on consumer device availability and retail pricing for PCs and smartphones as wafer allocation priorities evolve.
Quick glossary
- DRAM: Dynamic Random-Access Memory, a common type of volatile memory used in PCs, servers and other devices for short-term data storage.
- HBM: High-Bandwidth Memory, a fast memory standard often used alongside accelerators in AI datacenters to provide high throughput.
- Wafer: A thin slice of semiconductor material on which integrated circuits are fabricated; wafer production limits can constrain chip supply.
- Hyperscaler: A very large cloud provider or internet company (for example Microsoft, Google or Amazon) that buys datacenter-scale quantities of hardware.
- NAND: A type of non-volatile flash memory used for storage in devices like SSDs and smartphones.
Reader FAQ
Are memory prices rising and by how much?
Reports and market trackers point to sharp increases: up to 70% planned for server memory this quarter and TrendForce forecasts a more-than-60% rise in Q1 2026; conventional DRAM earlier jumped 55–60% in a single quarter.
Why are prices increasing?
Suppliers are reallocating advanced manufacturing capacity toward higher-margin server DRAM and HBM for AI datacenters, and demand from hyperscalers is outpacing supply.
Will consumers be affected?
The source says supply for PCs and smartphones is being squeezed and IDC warned knock-on effects for hardware makers and end users may persist into 2027.
Will memory firms profit from this?
Analysts have raised earnings forecasts and market moves show sharp share-price gains for major suppliers; the source cites large year-over-year gains in market caps and profit forecasts.
Will the shortage end soon?
Not confirmed in the source.
SYSTEMS Mem-ageddon: AI chip frenzy to wallop DRAM prices with 70% hike Samsung and SK hynix readying another gouge as server silicon squeeze leaves PCs and phones out in the…
Sources
- Mem-ageddon: AI chip frenzy to wallop DRAM prices with 70% hike
- Samsung, SK Hynix seek up to 70% server DRAM price …
- AI Boom Threatens to Push Smartphone, PC Prices Higher …
- The AI-fueled chip shortage could raise smartphone prices
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