DRAM, NAND prices hit record highs as chip shortage deepens

Samsung Electronics warned that memory chip shortages will persist through 2028 and intensify next year, a forecast that signals continued upward pressure on prices for phones, laptops, and gaming PCs as AI-driven demand outstrips the industry's ability to expand production.

Long-Term Crunch Deepens

Executive vice president Jaejune Kim, who leads Samsung's memory business, told analysts during the company's second-quarter earnings call on July 30 that "unmet demand from this year is likely to carry over into the following year, contributing to tighter supply conditions going forward." He added that "the supply constraints are expected to become even more severe in 2027 than 2026, reinforcing our view that the supply shortage will persist through 2028."cnet

Samsung reported that its operating profit jumped 19-fold to a record in the quarter, driven by soaring chip prices, according to Reuters. To lock in future revenue, the company has signed five-year supply agreements with the world's five largest data center operators, covering 60 to 70 percent of its memory capacity, with contracts that include upfront payments and floor pricing.inavateonthenet+2

Record Prices Across the Board

Data released Monday from industry tracker DRAMeXchange showed that average contract prices for benchmark PC DRAM rose 14.3 percent month-over-month in July to $24, the highest level since the tracker began compiling data in June 2016. NAND flash prices also surpassed $30, with single-level cell products jumping 35 to 51 percent as suppliers redirected capacity toward advanced 3D NAND for AI applications.koreatimes

The pricing pressure is already rippling into consumer devices. Samsung's own mobile division posted a 700 billion won quarterly loss as component costs climbed, and the new Galaxy Z Flip 8 launched with a $100 price increase over its predecessor. Apple ↘ 0.80% has also raised MacBook and iPad prices, citing memory and storage costs it can no longer absorb.finance.yahoo

Graphics Memory Joins the Rally

The AI-fueled boom is now spreading beyond server memory into graphics DRAM. Nvidia ↘ 1.47% is reportedly considering raising graphics card prices by 20 to 30 percent to reflect higher costs for GPUs and GDDR7 memory, according to The Korea Herald. Samsung and SK Hynix ↘ 3.12% stand to benefit directly as the three main GDDR7 suppliers alongside Micron Technology ↘ 2.22%. Samsung identified graphics DRAM as a next-generation growth product during its July earnings call and said it plans to expand GDDR7 shipments.koreaherald

"Beyond 2029, it is hard to say because of more limited visibility," Kim acknowledged, leaving open the question of when relief might finally arrive.cnet