Samsung announces another 100% price increase.

      On January 25, according to South Korea’s ET News, Samsung Electronics raised NAND flash memory supply prices by over 100% in the first quarter of this year—a surge far exceeding prior market expectations—and highlighting the severe supply-demand imbalance currently plaguing the memory chip market. Market research firm TrendForce had previously forecast a 33% to 38% increase in NAND prices for Q4 2025 and anticipated a similar rise in Q1 2026.

　　According to reports, Samsung Electronics has already begun negotiations with customers regarding NAND pricing for the second quarter of this year, and the market widely expects price increases to continue into Q2. This aggressive pricing strategy reflects the robust demand for high-performance storage driven by AI infrastructure development. Demand is growing exponentially due to surging enterprise solid-state drive (eSSD) requirements fueled by data center expansion and the shift toward higher-capacity storage in mobile devices and PCs driven by “on-device AI.” However, supply has failed to keep pace, resulting in a market situation where chips are “available at any price but not in stock.”

　　In addition to Samsung Electronics, SK Hynix—the second-largest NAND market share holder—has adopted a similar pricing approach, demonstrating the strong bargaining power of leading manufacturers. On the supply side, the memory chip market continues to face significant capacity rigidity. Over the past year, there has been no large-scale capacity expansion in the NAND flash sector, and major manufacturers, including Samsung Electronics, have maintained a cautious stance on investment. Industry consensus holds that shipment volume growth will remain extremely limited.

　　Given the long lead times required for semiconductor capacity construction, it is unrealistic to ease prices through increased supply in the short term. The pressure from rising memory chip prices will inevitably be passed on to consumers. Industry observers note that not only AI data centers but also smartphone and PC manufacturers plan to raise end-product prices in response to rising memory costs. According to the schedule, SK Hynix and Samsung Electronics will release their Q4 2025 financial results next Thursday (January 29). Tight supply conditions in the memory chip market are expected to persist. Japan’s memory giant Kioxia recently warned that the memory market will remain under the influence of AI-related investments for at least the next two years. Worse still, consumers will have to pay higher prices for the same products.

　　Kioxia is a global leader in NAND flash and SSD solutions. It was spun off from Toshiba in 2018 and is currently the world’s third-largest NAND flash supplier. Shunsuke Nakato, Executive Officer of Kioxia’s Memory Business Division, confirmed that the company’s entire NAND flash capacity for 2026 has already been sold out.

　　Kioxia is currently focused on enhancing the performance of storage devices tailored for enterprise AI applications. However, this strategic emphasis has driven up prices for traditional consumer-grade storage products. Speaking at an event in Seoul, South Korea, Nakato discussed the current AI-driven “super cycle” in memory and projected that tight NAND flash supply conditions will persist at least until 2027. To manage market demand effectively, Kioxia is coordinating annual chip capacity allocation plans with long-term partners rather than prioritizing buyers offering the highest bids, aiming to prevent market disorder. Looking ahead, Kioxia anticipates significant business expansion over the coming months and years, with price increases likely serving as a key driver of growth.

　　On Wall Street, research teams from Citigroup, Morgan Stanley, and Bank of America unanimously agree that the AI-driven “memory supercycle” has fully arrived, and this cycle’s intensity and duration may significantly surpass the “cloud computing–driven memory super bull market” of 2018.

　　Citi analysts led by Peter Lee forecast that average selling prices for DRAM and NAND flash products in 2026 could rise by 88% and 74%, respectively—substantially higher than Citi’s previous estimates of 53% and 44%. Analysts noted that increased adoption of AI applications and growing demand for CPUs dedicated to AI training and inference will lead to a severe shortage of general-purpose memory products this year. This “memory supercycle,” which began in the second half of 2025, is expected to last at least until 2027, with meaningful new supply unlikely to emerge before early 2028.

       Disclaimer: This article and its accompanying image are intended solely for engineers’ reference. For any copyright infringement or other violations, please contact the site administrator for resolution. (To explore more electronic components, visit Banyun IC.)