More memory price hikes may be coming as Samsung and SK Hynix notify customers

South Korean outlet SEDaily says both Samsung and SK Hynix have notified their customers of another second-quarter DRAM price increase and are entering price negotiations. Smaller customers are "expected to accept significant price increases to secure DRAM supply".

An "industry insider" told SEDaily: "Samsung Electronics’ current production capacity can only handle about 60% of the volume due to the continued surge in DRAM demand." With the supply so significantly constrained, and the AI demand showing no signs of slowing, DRAM manufacturers have their pick over which businesses to prioritise when it comes to the best deals.

Small and medium-sized companies now seem to be in the position of having to negotiate their relatively short-term contracts (compared to longer-term contracts agreed upon by larger businesses) within unfavourable pricing conditions—taking deals that would be unthinkable a few years ago in order to guarantee supply.

South Korea

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