Samsung Spurs Steep Server-Chip Surge

Samsung has sharply increased the prices of several server memory chips this month—by as much as 60 percent compared with September—amid an escalating global race to build artificial intelligence data centres, which has triggered a severe shortage of memory chips. The information was confirmed by two officials familiar with the development, according to Reuters.

Although Samsung typically announces its monthly supply-contract prices, the company has not officially disclosed the October rates. However, industry officials indicate that under the new pricing structure, 32-gigabyte DDR5 chips are priced at USD 239 in November, a steep rise from USD 149 just two months earlier. Similarly, prices for 16-GB and 128-GB chips have increased by nearly 50 percent, while the prices of 64-GB and 96-GB chips have risen by more than 30 percent.

This surge in chip prices is expected to place considerable pressure on major server manufacturers and data-centre operators. It will also drive up production costs for smartphone and computer makers.

Nevertheless, for Samsung—currently lagging slightly behind competitors in the advanced AI chip race—the ongoing supply shortage is presenting an opportunity for increased profits.

Market analysts predict that in the October–December quarter, the company may raise contract prices even further—by 40 to 50 percent, outpacing the industry average—given the exceptionally strong demand and the fact that many firms are now entering long-term supply agreements.

DBTech/BMT/OR