Samsung Electronics to Hike Storage Semiconductor Prices Amid AI-Driven Demand Surge

TapTechNews June 26th news, due to the surge in artificial intelligence (AI) demand, the competition in the storage semiconductor sector has further intensified, and it is expected that Samsung Electronics' performance in the second half of the year will improve.

According to the Korean 'Maeil Business Newspaper', Samsung Electronics has recently informed major clients including Dell Technologies and Hewlett Packard Enterprise (HPE) of its price hike plan and is preparing to increase the quotations of its main storage semiconductors, server DRAM and enterprise-level NAND flash memory by 15-20% in the third quarter, while Samsung has already increased its enterprise-level NAND flash memory price by more than 20% in the second quarter.

The Device Solutions (DS) division of Samsung Electronics, which is in charge of the semiconductor business, held a global strategic meeting today at its Hwaseong plant in Gyeonggi-do to brief on this plan.

According to the data of the market research company D-RAMExchange, the global enterprise-level NAND flash memory sales in the first quarter of this year reached 3.758 billion US dollars (TapTechNews note: currently about 27.343 billion Chinese yuan), an increase of 62.9% quarter-on-quarter. The growing AI demand has led to shortages in some product inventories, and customers are increasingly willing to lock in orders in advance.

A semiconductor industry insider said: 'Normally, customers only need to give the demand for the next quarter in advance, but now they are telling the chip manufacturers their annual plans', 'As it is currently a supplier-dominated market, the final negotiated increase may be higher than 15%.'