Samsung raised memory chip prices by up to 60% since September, according to reports — AI data center build out strangles supply

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This could be the canary in the coal mine for much higher memory prices to come.

Samsung NAND Flash memory chip.
(Image credit: Getty Images/Bloomberg)

The prices of electronic products that use NAND flash memory are likely to continue rising, as Samsung has reportedly increased the prices of its individual memory chips by as much as 60% since September, Reuters reports. This follows reports earlier this month that the price for DRAM sticks of memory for desktop computers had increased by over 170% year on year. Mostly driven by the high demand for building new AI-focused data centers, memory makers aren't planning to increase production either, on the off chance the demand dries up.

With the rapid advance of AI infrastructure development, there have been several demand-induced shortages of critical hardware throughout 2025. It started with graphics cards as a new generation arrived at the start of the year. Even as that eased, power costs started to rise for communities living near new data center builds, and even Microsoft couldn't find the power it needed to run the GPUs it had purchased. Elon Musk's xAI bought up masses of gas turbines and is even importing a power station.

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Jon Martindale
Jon Martindale
Freelance Writer

Jon Martindale is a contributing writer for Tom's Hardware. For the past 20 years, he's been writing about PC components, emerging technologies, and the latest software advances. His deep and broad journalistic experience gives him unique insights into the most exciting technology trends of today and tomorrow.

15 Comments Comment from the forums
  • Zaranthos
    They say they have no plans to increase production but that's nonsense. If they don't increase production along with demand new competition will flood in to fill the gaps and most of that would come from China which is exactly what most wouldn't want.

    A growing number of countries are wising up to relying too heavily on China for goods, especially technology. Having your supply chain at the mercy of the whims of the CCP or susceptible to the build in surveillance tech China uses to spy on its own people gives them reason for concern.

    There will be growing pains, and that will include increased prices, but usually there is an overall benefit in the end. R&D will increase, production will increase, and when the AI insanity calms down or the bubble bursts prices will fall and higher end tech will fall into normal consumers price ranges again.
    Reply
  • BelowTheL1ne
    This is fake news. Ram and m.2 drive prices continue to fall like always. Demand just isnt there for consumers because most people do not need the speeds and have realized it. They have priced in this cost already from production but it doesnt sell.
    Reply
  • acadia11
    Zaranthos said:
    They say they have no plans to increase production but that's nonsense. If they don't increase production along with demand new competition will flood in to fill the gaps and most of that would come from China which is exactly what most wouldn't want.

    A growing number of countries are wising up to relying too heavily on China for goods, especially technology. Having your supply chain at the mercy of the whims of the CCP or susceptible to the build in surveillance tech China uses to spy on its own people gives them reason for concern.

    There will be growing pains, and that will include increased prices, but usually there is an overall benefit in the end. R&D will increase, production will increase, and when the AI insanity calms down or the bubble bursts prices will fall and higher end tech will fall into normal consumers price ranges again.
    From who, aside from dram manufacturers acting as a cartel, who is the competition you speak of … you have samsung, sk Hynix, and micron making today’s DDR5 dram if someone could have broken into the cadre they would have done so. These are the folks that can produce the speed and capacities and have the tech to do it today. It’s like saying a new player is going to pop up as a tool manufacturer to compete with ASML or TSMC in leading edge node production. It takes years of investment and oodles of money to build factories and considering the demands if it was that simple would have happened already. The IC market is a mature market not a revolutionary market where new players can just jump in and be advanced enough to to compete.
    Reply
  • tamalero
    Didnt these clowns reduce production because of oversupply like a year or so ago?
    Reply
  • tjvaldez01
    acadia11 said:
    From who, aside from dram manufacturers acting as a cartel, who is the competition you speak of … you have samsung, sk Hynix, and micron making today’s DDR5 dram if someone could have broken into the cadre they would have done so. These are the folks that can produce the speed and capacities and have the tech to do it today. It’s like saying a new player is going to pop up as a tool manufacturer to compete with ASML or TSMC in leading edge node production. It takes years of investment and oodles of money to build factories and considering the demands if it was that simple would have happened already. The IC market is a mature market not a revolutionary market where new players can just jump in and be advanced enough to to compete.
    I agree that a non-Chinese company can't just jump in and compete. However, YMTC is adding capacity as fast as it can and may pose a mear-term problem. We shall see how this plays out.
    Reply
  • Zaranthos
    acadia11 said:
    From who, aside from dram manufacturers acting as a cartel, who is the competition you speak of … you have samsung, sk Hynix, and micron making today’s DDR5 dram if someone could have broken into the cadre they would have done so. These are the folks that can produce the speed and capacities and have the tech to do it today. It’s like saying a new player is going to pop up as a tool manufacturer to compete with ASML or TSMC in leading edge node production. It takes years of investment and oodles of money to build factories and considering the demands if it was that simple would have happened already. The IC market is a mature market not a revolutionary market where new players can just jump in and be advanced enough to to compete.

    Samsung Electronics Co. Ltd.
    Winbond Electronics Corporation
    Nanya Technology Corporation
    ATP Electronics Inc.
    Micron Technology Inc.
    Integrated Silicon Solution Inc.
    SK Hynix Inc.
    Powerchip Technology Corporation
    Kingston Technology Corporation
    Transcend Information Inc.

    There are others, and there are new startups in multiple countries.
    Reply
  • Zaranthos
    tamalero said:
    Didnt these clowns reduce production because of oversupply like a year or so ago?

    Yes.
    Reply
  • hotaru251
    again expected.

    memory makers have been caught colluding in past and they have purposefulyl cut production to raise price (which tbf was justified back then)
    One company doing it notifies the rest to do it.

    Its a way to collude w/o having any private conversations and avoid any legal trouble.
    Reply
  • nrdwka
    BelowTheL1ne said:
    This is fake news. Ram and m.2 drive prices continue to fall like always. Demand just isnt there for consumers because most people do not need the speeds and have realized it. They have priced in this cost already from production but it doesnt sell.
    where? on amazon Few months ago 96GB sodimm DDR5 5600 was ~200USD ans 4TB SSD lexar was the same. Now they are almost +50%.

    As about Samsung and other chip makers: pure greed
    Reply
  • call101010
    nrdwka said:
    As about Samsung and other chip makers: pure greed
    Meh .. it is not greed .. it is called business. if you want capitalism this is it 100% . If you want Socialism then the government does not allow prices going up ... you cant have them both.
    Reply