Samsung, SK hynix Raise DRAM Prices as Big Tech Scrambles

Since the second half of last year, the global DRAM market has remained firmly in a state of tight supply, with demand consistently outpacing available capacity. This imbalance is widely expected to continue through the end of this year, keeping prices on an upward trajectory. In recent first-quarter negotiations for server-grade DRAM, Samsung Electronics and SK hynix reportedly sought price increases of around 50% to 60% compared with the previous quarter, highlighting just how constrained the market has become.

Competition for limited DRAM output has intensified among major cloud and AI players such as Google, Microsoft, and Meta. Industry sources note that these companies have gone so far as to visit Samsung and SK hynix directly in an effort to secure additional volume. This scene stands in sharp contrast to the early days of Korea's semiconductor industry more than four decades ago, when sales teams traveled through Silicon Valley carrying samples and struggling to win attention. Today, the balance of power has clearly shifted, underscoring the strong position Korean memory makers now hold in the global ecosystem.

Analysts point out that early AI-driven demand was largely centered on high-bandwidth memory (HBM), but momentum has since spread rapidly to conventional server DRAM. This shift is pushing the semiconductor sector into what many describe as an unprecedented super-cycle. DRAM, often referred to as a computer's "short-term memory," plays a critical role in temporarily storing and quickly accessing data during CPU operations. While HBM has become essential for AI acceleration thanks to its massively expanded data pathways, its high cost and limited scalability have led many technology companies to significantly increase purchases of server DRAM to support large-scale data storage and processing needs.

Pricing trends clearly reflect the severity of the shortage. The average fixed transaction price for DDR4 8GB, for example, jumped from about USD 1.4 in January last year to roughly USD 9.3 by December, representing an increase of more than 560%. According to forecasts from KB Securities Research Center, continued price momentum could push operating margins for some mainstream memory products beyond 70%, with DDR5 margins potentially surpassing those of HBM3E. The firm emphasizes that, this year, overall semiconductor performance is still likely to be driven primarily by general-purpose memory rather than niche segments alone.

Looking back, the transformation of Korea's semiconductor industry is striking. From an era of actively seeking adoption to a position where global tech leaders are now requesting supply, the shift reflects decades of accumulated process expertise, manufacturing scale, and execution capability in memory technology. As AI-driven computing continues to rely heavily on foundational hardware, expanding margins in conventional DRAM may make the performance of Samsung and SK hynix a key indicator for the broader direction of the global semiconductor market in the months ahead.