AI Data Center Boom Triggers Global Memory and Storage Crisis as Prices Soar 100%

Asus, MSI, other manufacturers panic-buying RAM stocks, while major memory chipmakers rake in profits -- massive demand for HBM and RDIMM for data centers driving shortage

Major PC brands, system integrators, and memory makers are now panic-buying memory chips and modules as the DRAM and NAND chip shortage is taking hold. According to DigiTimes, numerous companies are in a race to build up their stocks as data centers are swallowing up supply, leaving the consumer industry scrambling to get memory modules. Asus said that its memory inventory for production and those that are already in finished products sit at two months, which should be enough for the remainder of 2025. However, unless the situation changes, the company will start feeling the pinch of the shortage by 2026, requiring it to adjust its prices accordingly. While most large companies like Asus and MSI typically have contracts with memory chip manufacturers, reports say that they're also now purchasing a lot of inventory in the spot market, where prices are more volatile, presumably to shore up their supply. This is a major change and could be a sign of things to come, as it usually only hosts low-volume purchases from smaller companies or when a major institution needs to acquire more memory modules due to unforeseen demand. These actions in the spot market are increasing pricing pressure, and it's already being felt by retail customers. RAM prices have jumped by 100% or more recently, and we've even heard reports of some Japanese shops limiting sales volume per customer because of limited deliveries, with some products remaining out of stock from distributors. Even memory kit makers are reportedly delaying the launch of new models due to the memory supply crunch, with products scheduled for launch in the last quarter of 2025 being moved to 2026. The global infrastructure build-out of AI data centers is driving the massive demand for HBM and RDIMM, pushing out the supply for consumer memory and causing a "pricing apocalypse" that could last a decade. With companies investing billions of dollars in hardware, memory chipmakers are converting existing DRAM lines to take advantage of this lucrative market. Most major memory chip manufacturers have reported record earnings for the 3Q25, with upstream firms also reaping benefits from the massive jump in demand. Unfortunately, they're also wary of market volatility, especially with some experts saying that we're in an AI bubble that can burst anytime. Because of this, most of them aren't willing to invest billions of dollars in additional facilities to increase RAM production. But even if they start construction on new chip fabs right now, it will take several months, if not years, for them to begin operating, and churning out the memory chips we sorely need.

SSD Storage Prices To Climb as AI Demand Meets Tight NAND Supply

When he's not battling bugs and robots in Helldivers 2, Michael is reporting on AI, satellites, cybersecurity, PCs, and tech policy. Don't miss out on our latest stories. Add PCMag as a preferred source on Google. The AI demand isn't just affecting pricing for RAM, but also risks hitting the costs for SSD storage. The CEO of Phison, a major provider of controllers for SSD drives, told investors last week to brace for price increases for NAND flash, which is used in PC storage. "Recently all the NAND companies start to increase their selling price almost up to 50, 75%," said Phison CEO Khein Seng Pua in an earnings call. "So the demand is turned to very strong in Q4." "We believe the cloud AI, the edge AI, is going to need more storage and hard drive displacement is happening. So NAND will be supply tight for many, many years," he added. Later in the call, Phison's CEO also credited the surge to both the AI sector and "very strong" demand for PCs and mobile devices. "Just suddenly the AI systems need more storage for AI inference," he noted. Pua said it was hard to predict NAND pricing for next year. But he doesn't expect enterprise cloud service providers to reduce their demand for storage, citing the need to keep up with the AI demand. "They want to have more revenue, more income. They need to have more storage," he said. As a result, he's urging NAND suppliers to refrain from raising pricing too high. "We hope, we wish, we ask, we request if the NAND company is enjoying good gross margin, 50, 60%. Good. Don't try to go to 80%. This definitely will kill a lot of industry," he said. Pua also laid out a scenario where if the pricing for flash memory doubles, then hardware manufacturers in the smartphone and PC industry could drastically cut the storage capacity in their products by as much as 50%. "For example, a smartphone using 256 gigabyte, price go 2x, they cut down to 128 gigabyte. Then the demand suddenly drop, then the price going down," he said. Phison's CEO made the comment after flash memory provider SanDisk's CEO also reported that "demand for our NAND products continued to outpace our supply, a dynamic we expect to persist through the end of calendar year 2026 and beyond." The good news is that pricing for consumer SSDs seems to have only slightly increased in recent weeks. For example, the prices for Samsung's NVMe storage seems to have gone up by around $10, according to PCPartPicker.com Still, PC builders should consider buying storage now, or during the upcoming Black Friday sales, rather than waiting. AI demand has also caused pricing for DDR5 and DDR4 RAM to skyrocket in recent months. Meanwhile, Phison's CEO said the company has already secured NAND memory units from its suppliers for next year, but isn't sure if it'll be enough.

Samsung reportedly jacked memory prices 60% last month

If you haven't noticed, DRAM memory has gotten a lot more expensive in recent weeks. Amid a shortage broadly attributed to a surge in demand for AI infrastructure, Reuters reports that memory giant Samsung has hiked prices 60 percent since September, citing two persons familiar with the matter. Among the memory types affected are DDR5 memory modules used in almost all kinds of computing devices: smartphones, laptops, desktops, workstations, and servers. DDR5 isn't normally associated with AI accelerators. Those typically employ GDDR or HBM, which trade capacity for the higher bandwidth required for those workloads. However, the systems into which these accelerators are deployed do use DRR5 for the system memory to feed the CPU and to store intermediary data, like the key value caches used to prolong a model's short-term memory over extended periods. The memory shortage has been a boon for Samsung, which trailed its rivals in the AI chip space in part due to its struggles validating its latest generation HBM3e modules for use in Nvidia GPUs like the B200 and B300. But while the AI infrastructure boom is being blamed for the chip crunch, it may not be the only factor contributing to the shortage. Unlike many chips, memory is a commodity market. Micron, SK Hynix, Samsung, and a slew of smaller Chinese vendors like CXMT and YMTC all design chips to a common spec defined by standards bodies like JEDEC. While some memory vendors may get to market with new technologies before others, they pretty much all make the same thing. As a result, the memory market is prone to periodic boom-bust cycles, in which prices rise and fall as inventories rise and fall. These cycles often hit around technology refresh cycles, like the shift from DDR4 to DDR5, as memory vendors need to ramp production in anticipation of these transitions. During periods of high supply and low demand, average selling prices typically fall in order to maintain sales and keep the fabs utilized. In some cases, chipmakers will deliberately slow production in order to draw down existing inventory. However, this approach can backfire if demand suddenly surges, as it takes time to ramp production. The ensuing supply-demand mismatch in turns translates into higher prices. The same happens when demand exceeds manufacturing available capacity. The latter issue appears to be at play here. Despite unprecedented demand, analyst outfit Trendforce notes that memory vendors haven't ramped up production, instead prioritizing research and development into new process and manufacturing technologies.

Manufacturers reportedly delaying launch of new memory modules due to massive price crunch -- products slated for 4Q25 now expected to arrive in 2026

Memory prices have recently surged by 100% or more, driven by market pressure from the massive demand for memory chips amid the AI infrastructure buildout. Because of this, memory module manufacturers are reportedly delaying the launch of new memory kits, which were expected to arrive in the latter half of 2025. According to Hardwareluxx [machine translated], the companies are moving their new product releases to 2026 to see the effect of the supply crunch on memory pricing. Writing for Hardwareluxx, Andreas Schilling has charted big price rises on popular RAM kits from vendors including Corsair and Teamgroup. In the context of the report, Schilling also noted, "We are aware of several memory kit manufacturers who have announced that they will not be introducing or launching the kits planned for the third and fourth quarters of this year," claiming instead these vendors are waiting and seeing how memory prices develop in 2026. Schilling did not specify which vendors this may refer to or give any details about specific products affected by the paused launches. Unfortunately, we do not expect any positive news on the supply end for memory chips. Reports suggest that manufacturers have no plans to increase RAM production, meaning the shortage will extend next year, and possibly well into 2027. If the situation does not change, experts say that the pricing apocalypse will last a decade. The expected shortages and accompanying price increases of memory modules are now being directly felt by consumers across the globe, with retailers in Japan now limiting sales due to the lack of supply. However, the memory chip shortage is far-reaching and won't be limited to those looking for more RAM. There have been rumors that the Nvidia 5000 Super Series of GPUs will never materialize because of the scarcity. Although the company hasn't yet announced the refresh of its Blackwell consumer graphics cards, they're typically released 12 to 18 months after the arrival of a new generation of GPUs. Even smartphone makers are feeling the pinch, with Xiaomi warning of higher prices for its handsets because of the skyrocketing memory costs. Chip manufacturers are converting their DRAM production lines to HBM to capture the massive demand from the AI industry. Since the biggest DRAM manufacturers also make NAND chips, and they're prioritizing production for AI chips, it means that we can also expect shortages in storage drives like SSDs and memory cards. But because of the semiconductor industry's volatility, they are not keen on building new fabs to increase output. This is especially true with all the talk of the AI bubble, meaning these companies aren't willing to invest billions of dollars in new facilities that take years to build, only to have the bubble pop and leave them with gleaming new factories with practically zero demand.

Data centers are now hoarding SSDs as hard drive supplies dry up

Serving tech enthusiasts for over 25 years. TechSpot means tech analysis and advice you can trust. What we know so far: With hardware and semiconductor makers struggling to meet surging AI demand, prices for critical PC components have soared in recent months. A new report indicates that AI-driven consumption is now causing storage shortages, with delivery times for enterprise hard drives stretching beyond two years. According to Taiwan tech publication DigiTimes, most AI firms are unwilling to wait two years for HDD supplies to stabilize and are shifting to SSDs instead. To contain costs, they are choosing QLC NAND-based drives over the faster, more durable, and more expensive TLC variants. Industry observers expect the surge in QLC-based SSD demand from data centers in the US, Canada, and China to trigger a consumer SSD shortage. Since most mainstream drives already use QLC NAND to stay affordable, the shortfall could push costs even higher, adding pressure to consumers already facing record hardware prices. Analysts believe that with AI firms adopting QLC en masse, it will surpass TLC in total sales by early 2027 - a seismic shift for the SSD market. The report also notes that AI companies are already stockpiling QLC NAND ahead of an expected shortage, leaving some manufacturers' production capacity fully booked through 2026. The rapid growth of the AI sector and the race toward artificial general intelligence have put a massive strain on the infrastructure supporting hyperscale data centers. Beyond GPUs and accelerators, the surge has driven unprecedented demand for every layer of PC hardware - from CPUs and memory to high-speed networking and large-scale storage arrays. Soaring demand has pushed component prices sharply higher, with DRAM climbing nearly 50 percent in recent weeks. Reports indicate that AI data center operators in the US and China now receive only about 70 percent of their DRAM allocations, even after agreeing to pay the inflated rates. The price surge extends beyond high-bandwidth memory. An earlier DigiTimes report notes that demand for standard DDR5 RDIMMs now exceeds supply, as major chipmakers Samsung and SK Hynix divert production from consumer markets toward higher-margin AI components.

Samsung raises memory chip prices by up to 60% since September, according to reports -- AI data center build out strangles supply

This could be the canary in the coal mine for much higher memory prices to come. The prices of electronic products that use NAND flash memory are likely to continue rising, as Samsung has reportedly increased the prices of its individual memory chips by as much as 60% since September, Reuters reports. This follows reports earlier this month that the price for DRAM sticks of memory for desktop computers had increased by over 170% year on year. Mostly driven by the high demand for building new AI-focused data centers, memory makers aren't planning to increase production either, on the off chance the demand dries up. With the rapid advance of AI infrastructure development, there have been several demand-induced shortages of critical hardware throughout 2025. It started with graphics cards as a new generation arrived at the start of the year. Even as that eased, power costs started to rise for communities living near new data center builds, and even Microsoft couldn't find the power it needed to run the GPUs it had purchased. Elon Musk's xAI bought up masses of gas turbines and is even importing a power station. But now the ripple effect of the AI explosion is reaching further and deeper, and it's been hitting memory for a few months now. DRAM prices have been spiking, and it sounds like, behind the scenes, Samsung has raised its per-chip prices dramatically. Reuters reports a contract price for 32 GB of DDR5 was $149 in September, but would now cost $239. Although this effect has most obviously been felt among DIY PC enthusiasts looking to upgrade their kits of DDR5, DRAM is in everything. A serious shortage or major price rise affects just about everything, from smartphones to laptops, and IoT devices to smart appliances. The signs of a shortage have encouraged panic buying in some markets, with Reuters reporting in late October that memory manufacturers were seeing double or triple orders coming in as companies stockpile to ward against supply constraints. As we saw with the surge in prices for last-generation graphics cards when the new-at-the-time RTX 50-series GPUs debuted earlier this year, memory is being similarly impacted. DDR4 prices surged in August after production was slowed, with cutting-edge memory chip manufacturers like Samsung pivoting more towards the latest designs and high-end memory like HBM, which is seeing increased use in the latest professional GPU stacks and data center rack servers powering AI. The real issue, though, is that this may just be getting started. The shortage is expected to worsen in 2026, and according to some analysts, it could last up to a decade as the industry continues to grow with the capabilities of AI, and manufacturers struggle to keep up.

PC builders face new delays and rising costs as AI boom drains chip supply

DDR4 memory is disappearing as manufacturers chase profit in newer technologies A growing shortage of storage and memory chips is beginning to hit PC builders and consumers worldwide, with some retailers reportedly stopping some sales to stop hoarding. In Japan, several computer shops in the famous Akihabara area have started limiting the sale of SSDs, HDDs, and RAM because their stock is running out. Distributors have also paused deliveries, and stores say they are receiving far fewer shipments than expected, leaving inventories thin and forcing some retailers to cap purchases at just a few units per customer. The shortage is mainly driven by the surge in demand for chips used in AI data centers. Manufacturers have shifted production lines toward high-end SSDs, DRAM, and other components required for AI infrastructure, leaving fewer parts available for the consumer market, and both gamers and professionals are feeling the squeeze. As a result, memory prices have already doubled, and industry analysts expect them to rise even further in the coming months. Even older technologies like DDR4 RAM, once a cheaper alternative, are now harder to find. Memory makers are phasing out DDR4 in favor of the newer and more profitable DDR5 RAM, creating a bottleneck for anyone trying to upgrade older systems. Companies still relying on DDR4 components are stockpiling whatever they can, driving prices higher across the board. HDD production is also being affected. Many manufacturers are now prioritizing large-capacity drives for AI servers instead of consumer hard drives, leaving retailers with fewer options. Meanwhile, smaller PC makers such as Minisforum have already announced price increases on all models containing SSDs and DRAM, citing a "significant increase in our overall costs." While it may be reasonable to build new factories to tackle this shortage, this is not a quick fix. Chip fabrication plants take years to construct, and with some experts warning that the current AI boom could be a bubble, companies are hesitant to invest heavily in new capacity. If the AI market cools suddenly, they risk being left with a massive oversupply, and no one is willing to take this risk. For now, anyone planning to build or upgrade a PC will have to pay more and wait longer for parts. Via Toms Hardware

NAND prices double in six months; Phison CEO predicts years-long shortages

The global boom in artificial intelligence has triggered a severe shortage of essential storage chips, doubling prices in just six months, according to Khein-Seng Pua, CEO of Phison Electronics. The supply-and-demand imbalance for NAND flash memory will likely persist for several years, Pua warned, as chipmakers remain cautious about building new factories. Prices surge dramatically The price surge has been dramatic. Pua noted that prices for TLC 1-terabit NAND, a common storage component, skyrocketed from US$4.80 in July 2025 to US$10.70 in November 2025. Even older, low-density MLC chips have doubled in cost. The rebound has accelerated since October 2025, with some chip categories jumping over 100% since the spring of 2025. Phison, a major provider of NAND controllers, is riding the wave. The company reported third-quarter 2025 revenue of NT$18.14 billion (US$560 million), a 30% jump from the previous year. Its gross margin rose to 32.4%, and net profit hit NT$72.27 billion, the highest in three quarters. October 2025 revenue surged 90% year over year, fueled by a massive 280% annual increase in PCIe SSD controller shipments. The company credited stronger margins to rising memory prices and inventory revaluation gains. However, higher research and development spending on advanced technology squeezed operating profit, cutting its operating margin to 7.9%. Phison remains optimistic for the fourth quarter of 2025, expecting continued growth. Phison CEO Khein-seng Pua. Credit: DIGITIMES AI and cloud drive structural growth Pua explained that the intense demand from AI workloads is fueling "structural growth" in data storage. Hyperscale cloud service providers are rapidly expanding their data centers to keep up. This trend is also accelerating the industry's shift away from traditional hard disk drives (HDDs) to faster solid-state storage, putting even more pressure on the NAND supply. Pua explained that NAND manufacturers have been reluctant to expand their production capabilities after suffering through years of poor profitability. He warned that new production lines are not expected to be operational until late 2027. With demand from AI and cloud services continuing to rise, Pua stated that tight supply conditions are expected to become the new industry standard. Phison pivots to high-margin segments Phison secured most of its 2026 NAND supply during a lull midyear 2025 and has extended long-term agreements with six suppliers through 2026. Still, Pua said capacity is insufficient, as most manufacturers are already "sold out" through 2026. Phison's inventories stood at NT$1.02 trillion (US$31.53 billion) at the end of the third quarter of 2025, mostly for non-retail markets. Average inventory turnover was 224 days. Pua said that while stock levels may decline slightly as prices rise, the reduction will be limited. In response to the shortage, Phison is prioritizing its enterprise and industrial clients. Pua said the company is deliberately cutting back on retail shipments to focus on these higher-margin customers. The company expects enterprise SSD sales to grow to 20-30% of its total revenue by 2026. The company is also advancing its "AI Adaptive+" solution. This technology utilizes PCIe interfaces to enhance AI efficiency and reduce power consumption. By partnering with major GPU and server vendors, the program aims to offset reduced DRAM use as prices climb. Phison's enterprise storage business continues to grow as major cloud providers adopt its SSDs. In mobile markets, its eMMC and UFS products are gaining share, while automotive-grade UFS shipments are also ramping up. Article edited by Jerry Chen

Memory makers have no plans to increase RAM production despite crushing memory shortages -- 'modest' 2026 increase predicted as DRAM makers hedge their AI bets

Despite the recent massive price increases for RAM that have shocked enthusiasts, manufacturers aren't expected to meaningfully increase production of standard memory to offset the demand from the AI industry. According to TrendForce, memory makers are limiting their capital expenditure on building additional capacity, instead focusing on research and development of process technology, improving density through stacking, and the far more lucrative HBM chips for AI accelerators (HBM requires more wafers to produce than standard memory types). The three biggest memory chip makers -- Micron, SK hynix, and Samsung -- are anticipated to spend $54 billion on capital expenditure, but this is focused on improving the performance of HBM modules for AI chips. So, despite the 14% year-on-year growth in investments in the DRAM sector, they will not increase the available bit output of memory chips. Because of this, we can assume the ongoing shortage will continue into next year and well into 2027. In fact, experts say that the massive appetite for AI chips, driven by the infrastructure build-out, will cause a pricing apocalypse that will last a decade. Even though there is robust demand for both memory and storage chips, especially amid AI companies' multi-year expansion plans, manufacturers are not jumping headfirst into expanding their facilities. Aside from the natural volatility of the semiconductor industry, industry leaders also say that we're already in an AI bubble, and analysts suggest that it would take at least a $650 billion annual revenue for all the investment into the infrastructure to make sense. Because of this, memory chip makers are likely hesitant to spend billions on infrastructure, which, if the worst comes to pass, would leave them with multi-billion-dollar investments with practically no demand. And even if they start building new factories right now, it will take a couple of years or more before they can become fully operational and start producing chips for the market. Instead, they're focusing their capital outlays on technologies that have a higher ROI and efficiency. To satisfy the demand for these more lucrative chips, memory manufacturers are converting their existing DRAM manufacturing lines instead of building new ones. After all, doing so is much easier, cheaper, and less risky than building an all-new line -- but at the expense of reducing the output for consumer memory modules.

'We're facing [what has] never happened before: HDD, DRAM, HBM, NAND... all in severe shortage in 2026' says Silicon Motion's CEO as memory prices continue to soar

In case you've been living under a rock, memory prices have been rising at an astounding rate recently, thanks to an ongoing supply shortage, which is largely attributed to AI server demand swallowing up all the available DRAM modules. NAND flash is also in short supply, and so is... well, I'll let the CEO of Silicon Motion describe it better than I. Speaking during the company's most recent earnings call earlier this week, memory manufacturer chief Wallace C. Kou said: "We're facing [what has] never happened before, the HDD, DRAM, HPE, HBM, NAND, all in severe shortage in 2026. Most of our capacity [is] sold out." Kou also said that he'd spoken to other major manufacturers, and while he wasn't prepared to comment on their exact allocation policies, certain percentage distributions would be made between smartphones, PC, and automotive industries. "Of course, the majority will go to AI and AI servers," he clarified. "Balancing is very important so we can keep the whole industry moving forward." By the sounds of it, then, the heavy bias towards the AI industry looks set to continue, with us PC gamers left fighting for the scraps. It's looking like a grim 2026 for those of us looking to upgrade our system RAM or internal storage, never mind the knock-on effect it might have on future GPU releases. But there's money to be made out of the AI boom, and memory manufacturers certainly look to be making hay while the artificial sun shines. Silicon Motion reported a 22% increase in revenue year-over-year, while Samsung is reported to be raising prices by up to 60% on some of its chips. A recent Digitimes report breaks down the state of affairs as 2025 draws to a close. Memory module manufacturers (say that fast three times) and their associated suppliers like Transcent, ChipMOS, Hua Tung, and Formosa Plastics have reported record-high financial performance figures in recent months, while brands like Asus and MSI are said to be "aggressively stockpiling" memory modules to see out the hard winter yet to come. In fact, scrap winter -- 2026 as a whole is looking like a bloodbath for memory and SSD prices if the AI boom continues on its current trajectory, with some suggestion that the shortage may even continue into 2027. Of course, all this could change based on AI demand itself. Should the much-mooted AI bubble pop, it could put a pause on the vast data center expansion we've been reporting on over the past few years. There's always the possibility, too, that future AI models could potentially have drastically reduced RAM requirements, as AI servers need vast quantities of the stuff to help power current models at such an enormous scale. A more efficient model could cut down on hardware demands considerably and give the rest of the industry some breathing room. Still, that's all speculation for now. What we do know is that memory prices are currently sky high, SSDs seem to be slowly creeping up behind them, and that this shortage looks set to continue for some time to come. Here's hoping we don't get another Microsoft Flight Simulator 2024 released in the next year or so, at least. My 32 GB machine is already trembling in fear.

DRAM Output Won't Increase Despite Rising Memory Prices

The memory market is heading into another difficult stretch, and there's no clear sign that things will ease anytime soon. DRAM prices have climbed sharply over the past months, yet manufacturers aren't preparing any meaningful increase in production. Instead, most of the industry is busy redirecting its efforts toward high-bandwidth memory needed for AI hardware. HBM consumes far more wafer resources than regular DRAM, and because it delivers much better margins, companies naturally shift capacity toward it. The end result is simple: less DRAM on the market and higher prices for everyone who needs it. Major suppliers like Samsung, SK hynix, and Micron are still raising their investment budgets, with combined capital spending expected to reach roughly 54 billion USD. But this money isn't going into new fabs or expanded DRAM bit output. Most of it is aimed at improving HBM yields, stacking designs, and the manufacturing processes required for the next wave of AI accelerators. Even with a reported double-digit rise in DRAM-related investments, the practical effect on consumer memory supply is close to zero, and analysts expect these shortages to continue through 2027. The hesitancy to expand DRAM production comes mainly from uncertainty in the semiconductor market. AI demand is huge, but nobody can say how long this surge will last. Some industry voices believe AI is already in bubble territory. Analysts estimate the AI ecosystem would need to generate around 650 billion USD in yearly revenue just to justify the infrastructure spending currently underway. With that level of unknowns, chip makers are reluctant to build entirely new production lines that take several years to complete and may never operate at full capacity. This is why most companies are choosing a safer route: converting existing DRAM lines into HBM lines. Retrofitting is faster, cheaper, and far less risky than building a new fab from scratch. The downside is that every conversion removes another chunk of DRAM output from the global supply. With HBM demand exploding due to data center and AI server rollouts, manufacturers keep shifting more of their available resources toward these high-value chips. Another challenge is the simple reality of semiconductor construction timelines. Even if a memory maker green-lit a new facility today, it would take years before the first chips rolled off the line. DRAM also carries much lower margins compared to HBM, so without strong long-term guarantees, companies avoid sinking billions into additional DRAM capability. They'd rather focus on the parts currently driving revenue -- and that's squarely the AI market. For PC users, system builders, and OEMs, the situation means continued price pressure. Retail DRAM has already seen significant increases, and nothing suggests that new supply is coming to balance things out. As more production lines shift to HBM, DRAM output stays stagnant, and the shortage extends further. Experts expect limited supply growth throughout 2026, followed by a slow and gradual recovery that could stretch well into 2027.

Phison CEO confirms NAND prices have more than doubled and will continue to rise, all 2026 production already sold out -- SSDs facing pricing apocalypse throughout 2027

As an unprecedented DRAM crisis unfolds, artificial intelligence is sowing chaos on another front: storage. Data centers using nearline HDDs are switching to SSDs to avoid lead times, which has led to a supply squeeze for NAND flash memory -- one that's set to only worsen as the insatiable appetite for AGI continues to grow. As reported by Digitimes, Phison CEO Khein-Seng Pua confirmed that NAND prices have more than doubled in the past six months and that he expects it to stay this way for a while. The same 1 TB TLC chip that cost $4.80 in July of this year now costs $10.70. That might not seem like a big jump in a vacuum, but the ripple effect carries huge consequences when scaled up. The end-consumer looking to build their next PC is who pays for this added cost. For enterprise customers, whom Pua says Phison is prioritizing, their backers can keep pouring in more and more money since the AI boom has created a sort of bulletproof safety net around investments. Even older MLC memory has seen a doubling in prices, and since last month, this rapid inflation has only accelerated. Pua expects the NAND shortage to last for a few years, especially considering how bearish manufacturers have been when it comes to investing in new facilities. New production lines built to keep up with said demand won't be ready till at least late 2027, according to Phison. Elsewhere, during the company's recent earnings call, he confirmed that "every NAND manufacturer told us 2026 sold out. All the capacity sold out." Phison posted its year-best numbers in the third quarter of 2025, with NT$18.14 billion (560 million USD) in revenue, up 30% from the year prior. Apart from operating profits, which reduced to 7.9% due to R&D for next-gen memory, every other metric saw a jump across the board. Phison's current inventory stands at NT$1.02 trillion (31.53 billion USD), made up primarily of non-retail markets. Phison joins SanDisk, which has already raised NAND prices by 50%. Pua said that Phison is deliberately prioritizing its server market over retail consumers due to better margins, with its enterprise SSD business growing to account for up to 30% of all sales. Supply constraints are to become the new norm, with the CEO corroborating high lead times, given the average turnover was already 224 days for Phison up till Q3 2025. Previously, another Digitimes report said that QLC NAND (serving as a replacement for HDDs) is already backordered by 2 years.

Samsung has reportedly raised DDR5 memory prices by 60% because of AI shortages

TL;DR: Samsung Electronics has raised DDR5 memory prices by up to 60% due to soaring AI-driven demand and flash memory shortages expected in 2026. Price hikes affect 16GB to 128GB modules, impacting consumer electronics costs. Samsung plans new chip production facilities to address long-term supply challenges. With the AI boom and the rise of next-gen data centers in nearly every major city, as well as cloud-based computing, we've seen several reports in recent months of an unprecedented shortage of flash-based memory and storage expected in 2026. And as we're heading into the final weeks of 2025, it sounds like the price hikes and limited availability are already here. According to a new report from Reuters, Samsung Electronics is already raising the price on DDR5 memory modules by up to 60%. Prices for 32GB of DDR5 memory have increased from $149 in September to $239 in November. "The boom in artificial intelligence has stoked intense demand," the report writes, noting that memory chips are included in the rush to purchase every high-end GPU that is currently being manufactured. The report states that Samsung has delayed formally announcing this new pricing, citing information from sources "briefed by Samsung." Based on this information, the pricing for DDR5 modules at the company has increased across the board, ranging from 30% to 60%. Prices for 16GB and 128GB DDR5 modules have increased by around 50%, while prices for 64GB and 96GB DDR5 modules have increased by more than 30%. Naturally, with an impending shortage, there's panic buying, but these price increases for DDR5 memory modules could also drive up the cost of consumer products, including smartphones, laptops, and PC hardware. The report indicated that, as Samsung isn't the biggest name in memory, the shortages have been a "boon" for the company as it moves to create more AI hardware similar to that of its rivals, such as SK Hynix and Micron. The report notes that the price increases are now occurring because data center companies are currently negotiating long-term deals and agreements with suppliers, such as Samsung, for 2026 and 2027. On the plus side, the company has also recently announced plans to construct a new factory or chip production line in South Korea for memory chip production, indicating that it is actively working to improve the situation in the long term.

NAND flash pricing for SSDs has doubled in six months, 2026 capacity already 'sold out'

TL;DR: Phison CEO Khein-Seng Pua highlights a severe NAND flash and SSD shortage, doubling TLC 1-terabit NAND prices and driving a 90% revenue surge in 2025. AI-driven demand shifts storage from HDDs to SSDs, causing supply constraints through 2026, with new capacity only expected by late 2027, impacting retail prices and availability. According to Phison CEO Khein-Seng Pua, the severe shortage of NAND flash storage and SSDs has led to prices for TLC 1-terabit NAND doubling in the past six months from $4.80 USD to $10.70 USD. According to Phison's latest financial earnings, the company's October 2025 revenue increased by an impressive 90% year-over-year, driven by a substantial 280% rise in PCIe SSD controller shipments. As we previously reported, this demand is driven by the AI boom, which is causing the industry as a whole to shift away from traditional hard-disk drives (HDDs) to faster solid-state drives (SSDs). Not to mention the expansion and creation of new data centers and hyperscale systems designed with AI performance and flash memory in mind. Phison CEO Khein-Seng Pua previously stated that this demand could lead to a major issue with the supply of flash memory and SSDs, which could persist for at least a decade. His most recent comments reinforce this idea, with Khein-Seng Pua warning that new production capacity being built to handle the increased demand won't be online and operational until late 2027. On top of that, he also said that most manufacturers of SSDs (Phison is behind the SSD controllers found in many cutting-edge PCIe Gen4 and Gen5 SSDS on the market today, alongside eMMC and UFS products) are already "sold out" of capacity right through 2026. To make matters worse for everyday consumers looking to buy storage at some point in the near future, Phison and storage makers are prioritizing enterprise customers who are more than happy (read: have no choice) but to buy up inventory at inflated prices with higher margins. What does this mean for retail SSD pricing? It will continue to rise, and storage will become increasingly difficult to find as we head into 2026. Not only that, but the AI boom is having the same effect on the DRAM market, which is seeing pricing and availability of memory dry up to the point where we're now reporting on credible rumors that NVIDIA is planning to postpone or even cancel the release of its unannounced GeForce RTX 50 SUPER Series graphics card refresh because there's not enough GDDR7 capacity.

Samsung hikes memory chip prices by up to 60% as shortage worsens, sources say

Samsung Electronics has significantly increased prices for certain memory chips, with some seeing a 60% jump compared to September. This surge is driven by high demand for AI data centers and is impacting server makers and potentially other electronics. The move comes as the company delays formal pricing announcements, reflecting extreme price premiums in the market. Samsung Electronics this month raised prices of certain memory chips - now in short supply due to the global race to build AI data centres - by as much as 60% compared to September, two people with knowledge of the hikes said. The move follows the world's biggest memory chipmaker's decision to delay a formal announcement of pricing for supply contracts in October, they said, adding that pricing details are typically announced each month. Soaring prices for these memory chips, which are mainly used in servers, are likely to add to stress for big companies building out data infrastructure. They also threaten to increase the costs of other products like smartphones and computers in which they are also used. Many of the largest server makers and data center builders are "now accepting that they won't get nearly enough product. The price premiums being paid are extreme," Tobey Gonnerman, president of semiconductor distributor Fusion Worldwide, told Reuters. The South Korean firm's contract prices for 32 gigabyte(GB) DDR5 memory chip modules jumped to $239 in November, up from $149 in September, he said. DDR memory chips are used in servers, computers and other devices, assisting with computing performance by temporarily storing data and managing rapid data transfer and retrievals. Samsung also lifted prices of 16GB DDR5 and 128GB DDR5 chips by about 50% to $135 and $1,194 respectively. Prices of 64GB DDR5 and 96GB DDR5 have gone up by more than 30%, Gonnerman said. The price hikes were confirmed by another source who was briefed by Samsung. The source declined to be identified as the information is not public. Samsung declined to comment. The chip crunch has been so severe that it has spurred panic buying by some customers, according to industry executives and analysts. China's top contract chipmaker SMIC said on Friday that the memory chip shortage has meant that customers are holding back orders for other types of chips that are also used in their products. Xiaomi, a Chinese smartphone, electronics and auto manufacturer, also warned last month that the surging prices have raised the cost of making phones. The shortage is, however, a boon for Samsung which has lagged rivals in offering advanced AI chips and had, until recently, not seen its profits climb nearly as much. Its slower shift to AI chips has also meant Samsung has better pricing power than smaller rivals in memory like SK Hynix and Micron, according to Jeff Kim, head of research at KB Securities. TrendForce analyst Ellie Wang said Samsung is likely to raise quarterly contract pricing by 40% to 50% in the October-December period, higher than the average 30% expected for the wider industry. "They are really confident that the price is going to increase. And the main reason is that now the demand is really strong, and everyone is working on long-term agreements with the suppliers," she said, adding that those agreements are either for 2026 or 2026 and 2027 combined.

Samsung's Rumored Memory Price Hike Could Be a 'Catastrophe' for PC Gamers, Potentially Driving RAM Prices to Unimaginable Levels

Samsung is rumored to announce a significant increase in its memory prices, marking one of the largest hikes, which means that consumer RAM may become even more expensive in the future. Well, if you think RAM prices at their current stage are 'inflated', well, it appears that Samsung plans to take them even higher, as according to a report by Reuters, it is claimed that the Korean giant is rumored to increase memory prices by a whopping 60%, to keep up with the demand coming from the AI sector, and ensure a stable supply chain. It is disclosed that contract prices for 32 GB DDR5 modules have risen to $239, which marks a phenomenal MoM increase, almost a 50% increase, which is simply shocking. At this pace, consumer memory modules will only become increasingly expensive. Apart from this, the prices of 16GB and 128GB DDR5 have also risen by 50%, indicating that the broader pricing trend for memory modules has been increasing for several weeks now. The Korean giant is one of the biggest DRAM suppliers in the industry, and given that the firm has increased pricing for its memory products, it is imminent that other suppliers too will look for a more 'aggressive' price hike, which isn't good news for PC gamers at all, since memory upgrades are going to become a lot more difficult. We explained the reason behind RAM shortages in a previous report. For a quick recap, most demand comes from data centers seeking to leverage DRAM for HBM as well as DDR modules to maximize memory latency in their configurations. And since data center build-out is currently at its highest, it is certain that a shortage of components like DRAM and NAND will be present. And since manufacturers are receiving large-scale orders that reserve 'years of supply', the consumer markets will eventually suffer. By now, many of our readers would have already noticed the radical increase in DDR5 and DDR4 memory prices, and it appears that once the memory shortages start to become a lot more severe, companies like Corsair, Adata, and others would look to ensure a consistent supply by increasing the pricing of their products.

Samsung Hikes Key Chip Prices 60% To Keep Up With AI Boom 'Panic Ordering' - Samsung Electronics Co (OTC:SSNLF)

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. Also Read: Samsung Returns To Nvidia Supply Chain After 19 Months 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. Read Next: Key AI Chip Supplier ASML Deepens Ties With Samsung and SK hynix in South Korea Photo courtesy: Sybillla via Shutterstock SSNLFSamsung Electronics Co Ltd$65.2154.0%OverviewMUMicron Technology Inc$236.61-3.39%XIACYXiaomi Corp$28.10-0.14%Market News and Data brought to you by Benzinga APIs

Samsung raises prices of memory chips by up to 60% amid supply shortage

Samsung Electronics (OTCPK:SSNLF) increased the prices of certain memory chips, now in short supply due to the growing demand to build AI data centers, by up to 60% this month compared to September, Reuters reported, citing people familiar with the matter. Samsung's sharp DDR5 price hikes have triggered panic buying and reflect stronger pricing power compared to rivals, impacting supply chains and likely influencing broader sector prices. Strong AI data center demand, chip short supply, and long-term customer agreements are fueling Samsung's pricing power and resulting price increases. Samsung's slower shift to AI chips has improved its pricing power versus SK hynix and Micron; it also plans higher contract price increases than industry averages.

Think RAM Prices Are High? Wait Until You See What's Happening in the NAND Market, As Phison Reports Demand "Never Seen" Before

Well, it appears that after the DRAM segment, the NAND industry has started to report unprecedented demand, as one of the leading suppliers, Phison, calls the situation a "shocking" one. The AI industry has managed to take every aspect of the supply chain by storm, and after disrupting the chip market, it is now targeting the DRAM and NAND supply chains. Based on Phison's Q3 earnings call, the firm's CEO Khein-Seng Pua revealed that the ongoing memory cycle is something that has never been seen before, and apart from just DRAM, the ASPs of NAND TLC memory are rising massively, growing by up to 50-75% in just a few months, which is an indicator that consumer SSDs and associated NAND products are expected to become a lot more costly. One of the reasons the NAND industry is experiencing massive demand is that, in the age of inference, storage drives utilizing this technology are being adopted on a large scale. For instance, across data center environments, NAND-based drives are being used in model storage, pre-loading LLMs onto local SSDs for low-latency startup. In the event of an update to the model itself, these changes are reflected in storage devices, such as SSDs. Phison is reporting a 'tight market' supply, and the increase in NAND TLC pricing is expected to remain steady with time. Players within the NAND industry have experienced a 'demand drought' for quite some time now, and with AI inference, it has brought in a gigantic spike in the need for storage devices across AI environments. Phison's CEO claims that NAND facilities have been underutilized for several months, which means suppliers have been cautious when it comes to expanding capacities. However, since the demand coming from AI is on an 'unprecedented' scale, it is expected that supply will see a rise over time as well. We believe NAND company, they're not willing to expand the fab until now because in the last five years from COVID until now, the total profit in the NAND still even. They're not making any good profits, but from now on they start to get profit. - Phison CEO With the initial rise in DRAM demand, the average consumer was expecting a steady increase in RAM pricing, but what happened was that modules and their ASPs rose massively, doubling in many cases. Similarly, in the NAND industry, one can anticipate that prices for consumer storage devices, such as SSDs, will rise dramatically, especially for models with higher storage capacities. Hence, the upcoming 'deals season' might be one of the best times to upgrade your PC's storage capabilities.

Samsung takes advantage of global shortage of memory chips to raise its prices

In November, Samsung Electronics raised the prices of its DDR5 memory chips by up to 60% compared to September, in response to strong demand linked to the expansion of data centers dedicated to artificial intelligence. This price surge affects the entire range, with increases of 30% to 50% on capacities from 16 to 128 GB, according to data provided to Reuters by sources close to the matter. The price of a 32GB module has risen from $149 to $239 in two months. These increases, which have not been officially confirmed by Samsung, come after the unusual postponement of the October update to contract prices. This pressure on the supply of DDR5, which is used in many electronic devices, is complicating matters for server and data center manufacturers, which are forced to pay high premiums to secure their supplies. It is also affecting the entire technology sector, from smartphone manufacturers such as Xiaomi to foundries such as SMIC, some of whose customers are reducing or suspending other orders as a precaution. In this context, advance purchasing practices are on the rise, further increasing pressure on the market. Samsung, which was lagging behind its competitors in the field of artificial intelligence chips, is now taking advantage of this momentum to impose its prices. According to analysts, the South Korean group could see a 40% to 50% increase in its contract prices in the fourth quarter, above the sector average estimated at 30%. Long-term contracts, some valid until 2027, are reportedly already being negotiated, reflecting Samsung's confidence in continued demand.

Samsung hikes memory chip prices by up to 60% as shortage worsens, sources say

SEOUL/SINGAPORE (Reuters) -Samsung Electronics this month raised prices of certain memory chips - now in short supply due to the global race to build AI data centres - by as much as 60% compared to September, two people with knowledge of the hikes said. Shares of Samsung, SK Hynix and U.S. chipmakers rallied sharply on the news which underlines how the boom in artificial intelligence has stoked intense demand for chip units specifically designed for AI tasks as well as the memory chips used in those units. The price hike follows a decision by Samsung, the world's biggest memory chipmaker, to delay a formal announcement of pricing for supply contracts in October, the people said, adding that pricing details are typically announced each month. Soaring prices for these memory chips, which are mainly used in servers, are likely to add to stress for big companies building out data infrastructure. They also threaten to increase the costs of other products like smartphones and computers in which they are also used. EXTREME PRICES BEING PAID Many of the largest server makers and data center builders are "now accepting that they won't get nearly enough product. The price premiums being paid are extreme," Tobey Gonnerman, president of semiconductor distributor Fusion Worldwide, told Reuters. The South Korean firm's contract prices for 32 gigabyte(GB) DDR5 memory chip modules jumped to $239 in November, up from $149 in September, he said. After Reuters' initial report on Friday, shares in U.S. chipmakers jumped with Micron Technology climbing 4%. In Monday morning trade, Samsung's shares advanced 3% and SK Hynix surged 6%. All three stocks were regaining ground after earlier falls on concerns about stretched AI valuations. DDR memory chips are used in servers, computers and other devices, assisting with computing performance by temporarily storing data and managing rapid data transfer and retrievals. Samsung also lifted prices of 16GB DDR5 and 128GB DDR5 chips by about 50% to $135 and $1,194 respectively. Prices of 64GB DDR5 and 96GB DDR5 have gone up by more than 30%, Gonnerman said. The price hikes were confirmed by another source who was briefed by Samsung. The source declined to be identified as the information is not public. NEW FACTORY PLAN Samsung declined to comment. It separately announced on Sunday that it will build a new chip production line at its plant in South Korea, as it expects AI will drive demand for the mid- and long-term. The chip crunch has been so severe that it has spurred panic buying by some customers, according to industry executives and analysts. China's top contract chipmaker SMIC said on Friday that the memory chip shortage has meant that customers are holding back orders for other types of chips that are also used in their products. Xiaomi, a Chinese smartphone, electronics and auto manufacturer, also warned last month that the surging prices have raised the cost of making phones. The shortage is, however, a boon for Samsung which has lagged rivals in offering advanced AI chips and had, until recently, not seen its profits climb nearly as much. Its slower shift to AI chips has also meant Samsung has better pricing power than smaller rivals in memory like SK Hynix and Micron, according to Jeff Kim, head of research at KB Securities. TrendForce analyst Ellie Wang said Samsung is likely to raise quarterly contract pricing by 40% to 50% in the October-December period, higher than the average 30% expected for the wider industry. "They are really confident that the price is going to increase. And the main reason is that now the demand is really strong, and everyone is working on long-term agreements with the suppliers," she said, adding that those agreements are either for 2026, or both 2026 and 2027 combined. (Reporting by Hyunjoo Jin in Seoul and Fanny Potkin in Singapore; Editing by Miyoung Kim and Edwina Gibbs)