Samsung Hikes Key Chip Prices 60% To Keep Up with AI Boom ‘Panic Ordering’

Samsung Electronics Co Ltd (OTC:SSNLF) has hiked prices on key memory chips by up to 60% since September.

The South Korean memory chipmaker is squeezing buyers with steep price increases as panic ordering spreads across the industry.

The price hike came in response to a global crisis, triggered by demand for artificial intelligence data centers, which has created a global shortage, Reuters reported, citing unnamed sources familiar with the matter.

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The memory chipmaker delayed its usual monthly pricing update for October before implementing the steep hikes, the sources told Reuters.

The crisis of memory chips, primarily used in servers, prompted companies to expand AI infrastructure aggressively, now face higher costs, which could eventually push up prices for products like smartphones and PCs that also rely on them.

Samsung’s Profit

According to a report, Samsung expects its strongest quarterly profit in more than three years, fueled by surging global demand for AI-related memory chips.

The company forecasts operating income of 12.1 trillion won ($8.5 billion) for the September quarter, up 31.8% year-over-year, with revenue rising 8.7% to a record 86 trillion won.

Higher prices and tight supply for DRAM and NAND, along with booming demand for high-bandwidth memory used in AI servers, are driving the gains.

Analysts expect earnings momentum to continue as Samsung ramps shipments of advanced high-bandwidth memory (HBM) products and targets commercial HBM4 sales in 2026.

Chip buyers have started panic ordering. Industry executives and analysts at China’s top foundry, Semiconductor Manufacturing International Corp, reported that the shortage is forcing customers to delay orders for other semiconductor components.

Smartphone giant Xiaomi (OTC:XIACY) also warned that soaring memory prices are raising phone-production costs.

While Samsung has trailed rivals in advanced AI chips and only recently seen profits improve, the shortage now strengthens its pricing power over competitors like SK Hynix and Micron Technology, Inc. (NASDAQ:MU), KB Securities research head Jeff Kim told Reuters.

Samsung could raise contract prices by another 40%–50% in the fourth quarter, exceeding the industry’s expected 30% average.

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