Samsung Electronics is spearheading a new wave of memory price increases, with ongoing investment in AI infrastructure bolstering its position.

According to industry reports, Samsung Electronics Co., Ltd. is currently negotiating average selling prices (ASP) for general-purpose DRAM with clients for the third quarter, targeting an increase of up to 20% compared to the previous quarter. The company also plans to raise prices for low-power DRAM (LPDDR), which faces supply constraints in both server and mobile applications, by over 20%, demonstrating its firm stance in price negotiations.

The supply shortage situation persists. Continued investment in AI infrastructure by global tech giants is driving up overall demand for server DRAM, high-bandwidth memory (HBM), and LPDDR, making a near-term easing of tight supply unlikely. Industry observers note that while subsequent price increases may moderate, memory manufacturers like Samsung are poised to sustain high profitability into next year.

Samsung Leads Peers in Price Increases

Samsung's DRAM ASP increases this year have significantly outpaced its competitors. Industry data indicates its DRAM ASP rose approximately 90% quarter-on-quarter in Q1, followed by a 50% to 60% increase in Q2, with a target of around 20% for Q3.

In contrast, SK Hynix, which has a higher production share of HBM, is expected to implement smaller price hikes than Samsung. This difference is widely attributed to the companies' distinct product portfolios—Samsung has a higher proportion of general-purpose DRAM in its output, which offers greater pricing flexibility, and the company is also seen as more aggressive in pushing for price increases.

A semiconductor industry source commented, "Samsung Electronics is taking a very hard line in Q3 price negotiations, but whether clients will fully accept these terms remains to be seen."

Long-Term Agreements Provide a Price Floor

Even if the pace of sequential price increases slows, DRAM pricing has structural support in the medium term. Industry sources point out that the proportion of long-term supply agreements (LTAs) signed between key customers and memory makers is steadily increasing, effectively curbing downside price risks.

Micron disclosed at its recent earnings call that it has signed a total of 16 LTAs with customers. These agreements reportedly not only commit to purchase volumes but also establish price floors that safeguard high-profit margins. This trend reflects customers' anticipation of persistently tight memory supply in the medium to long term.

Meta's Cloud Strategy Not Seen as Demand Headwind

Some market voices had previously suggested that Meta's move to commercialize its cloud services and sell excess internal computing capacity externally might signal a saturation in its AI capacity, potentially negatively impacting memory demand.

However, Meta raised its full-year AI infrastructure investment plan in April from a previous range of $115-$135 billion to $125-$145 billion, maintaining its course of expanding capital expenditure.

Another industry source stated, "A more accurate interpretation is that Meta's move aims to utilize its internal computing resources more efficiently, not to signal an oversupply. Combined with factors like the expansion of price-floor LTAs and the renegotiation of HBM prices, the likelihood of a significant downturn in the DRAM market next year is very low."