Samsung Hikes Memory Chip Prices Up To 60% as Global Shortage Worsens 

SEOUL, 18 November 2025: Samsung Electronics, a global leader in memory chip production, has reportedly increased the prices of its memory chips by as much as 60% since September, according to industry sources. This dramatic price surge is a direct consequence of a worsening global supply shortage, driven primarily by the relentless demand for high-performance chips needed for Artificial Intelligence (AI) applications and the massive expansion of data centres.

The price hike affects both DRAM (Dynamic Random-Access Memory) and NAND flash chips, which are essential components in everything from smartphones and consumer electronics to servers and AI accelerators.

The AI and Data Centre Demand Crisis

The central factor driving the shortage and the subsequent price increase is the massive global build-out of infrastructure required to support the AI boom.

• AI Accelerators: The core of generative AI models requires enormous computing power, heavily relying on specialized, high-capacity memory chips, which are draining available supply faster than manufacturers can produce them.
• Data Centres: Major technology companies are rapidly expanding their data centres to host cloud services and AI processing, creating unprecedented demand for server-grade memory.

Market Implications

The aggressive pricing strategy by Samsung, mirroring moves by other key industry players, is expected to have far-reaching implications across the technology supply chain:

• Higher Costs for OEMs: Original Equipment Manufacturers (OEMs) who produce devices like laptops, smartphones, and servers will face significantly higher component costs, which are highly likely to be passed on to the final consumer.
• Worsening Shortage: The strong pricing indicates that the shortage is not expected to ease soon, signaling tight supply well into the coming quarters.

While the price increase will boost revenue for memory chip makers like Samsung, it places considerable financial pressure on the broader tech industry, underscoring the fierce global competition for essential AI-enabling components.