Samsung SK Hynix DRAM Prices Surge Due To Market Supply Imbalance
Samsung and SK Hynix have raised DRAM contract prices during the second quarter of 2026 because the semiconductor industry is experiencing a severe supply demand imbalance. The two largest memory producers in the world cannot meet current market demand because global artificial intelligence investments have exceeded their manufacturing capability. The market environment has shifted to prioritize volume acquisition above price negotiations because buyers now require more security for their purchases.
Current production figures indicate that Samsung Electronics is only meeting approximately 60% of existing DRAM demand. SK Hynix plans to increase production capacity by 7% this year, but the three major memory manufacturers will produce the same amount of memory as they did in previous years. The upcoming 2026 total price increase of 130% will stem from the stagnant supply in the market.
The industry is currently transitioning from basic search AI to agentic AI systems which can replace human expertise across government corporate and individual sectors. The structural shift has created a massive requirement for DRAM which supports inference and high speed computation. Industry insiders confirm that supply for next year is already largely accounted for which suggests that the upward price trend will continue.
The rising cost of memory has changed the trading practices for chips. Tech giants like Apple and Nvidia choose quarterly or semi annual contracts because they receive better pricing. The existing shortage has forced them to change their business strategies.
- Pre emptive Purchasing Suppliers are increasingly utilizing pre emptive purchase contracts to lock in volumes on a quarterly basis which manufacturers will benefit from.
- Pricing Disparity A significant gap has emerged between large scale buyers and small to medium enterprises (SMEs). Smaller clients must accept market rate increases which can exceed double the previous contract price.
- Standard Product Appreciation Prices for standard components such as DDR4 8Gb modules have grown exponentially from their base price of $1.30 last year to current market prices which are significantly higher.
Gartner and other analytical firms forecast that memory prices including DRAM and SSDs will increase by 130% before 2026 concludes. Buyers are focusing on supply chain security because manufacturers are starting price discussions for the second quarter. Semiconductor sources predict that businesses which adopt multiple AI technologies will create demand for high performance memory which exceeds current manufacturing capacity until 2027.
