Recent reports indicate that Samsung has significantly increased memory chip prices, raising them by 60% since September. The reason, frequently cited in similar news reports, is the global surge in data center expansion driven by the artificial intelligence (AI) revolution, leading to a tight supply of memory chips. While both NAND flash memory and DRAM are experiencing supply shortages and price spikes, the market demand for DRAM appears to be more urgent than for NAND flash memory.
According to SE Daily, Samsung is preparing for a major restructuring of its memory chip production capacity, planning to convert some NAND flash memory production lines in Pyeongtaek and Hwaseong, South Korea, into DRAM production lines. Additionally, it will utilize its Pyeongtaek P4 plant to produce the latest 1cm DRAM to address the continued surge in DRAM demand.
Industry insiders reveal that Samsung is now taking a more cautious approach to the NAND flash memory market, while being more proactive in responding to DRAM demand. Previous reports indicated that Samsung, SK Hynix, Kioxia, and Micron, the four major NAND flash memory manufacturers, have all chosen to reduce NAND flash memory production in the second half of 2025, further driving up prices. In other words, the current SSD price increase is a result of combined efforts from all parties involved.
DRAM prices are currently rising rapidly, with some server customers offering a 70% premium for high-capacity DDR5 modules, yet supply still cannot be guaranteed. Some technology companies predict that the DRAM shortage could last for several years, and negotiations are already underway regarding DRAM capacity allocation for 2027.
Samsung produces NAND flash memory and DRAM chips at its P1 and P3 plants in Pyeongtaek and Hwaseong. Under the new plan, the hybrid production lines at the P1 and Hwaseong plants will further shift towards DRAM production, with the newly built P4 plant in Pyeongtaek primarily dedicated to DRAM. Although NAND flash memory production in South Korea has decreased, Samsung intends to increase output at its Xi'an plant to offset this and maintain sufficient supply.
