Due to the new US tariff policy, Samsung is increasing DRAM prices: DDR4 by 20% and DDR5 by 5%. Companies are stocking up in advance, boosting demand.

Taiwan • Business • 05/13 06:59
Due to the new US tariff policy, Samsung is increasing DRAM prices: DDR4 by 20% and DDR5 by 5%. Companies are stocking up in advance, boosting demand.

In May 2025, Samsung Electronics agreed with major clients to raise DRAM prices due to new upcoming US tariff policies, with DDR4 increasing by 20% and DDR5 by 5%. This move was driven by companies stocking up in advance, which increased demand. SK Hynix and Micron also adjusted their prices simultaneously, indicating supply chain and policy pressures in the DRAM market. These adjustments reflect changes in market demand and suppliers' strategic responses.

Key Updates

05/13 15:24

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05/13 10:59

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05/13 10:59

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05/13 10:26

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05/13 08:57

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05/13 06:59

Due to the new US tariff policy, Samsung is increasing DRAM prices: DDR4 by 20% and DDR5 by 5%. Companies are stocking up in advance, boosting demand.

In May 2025, Samsung Electronics agreed with major clients to raise DRAM prices due to new upcoming US tariff policies, with DDR4 increasing by 20% and DDR5 by 5%. This move was driven by companies stocking up in advance, which increased demand. SK Hynix and Micron also adjusted their prices simultaneously, indicating supply chain and policy pressures in the DRAM market. These adjustments reflect changes in market demand and suppliers' strategic responses.

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05/12 18:56

US-China Tariff Deal Sparks Market Rally: Tesla's Valuation Hits $1 Trillion Again, Foreign Investment Pours into Asian Stocks

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Samsung Agrees on Price Increases with Customers

According to reports from the Electronic Times and several international media outlets, Samsung completed a new round of contract negotiations with its major customers in early May 2025, agreeing on DRAM price increases. This adjustment covers two major product lines: DDR4 and DDR5. Specifically, the price of DDR4 will increase by an average of 20%, while DDR5 will rise by about 5%. The increase will vary slightly based on customer size and contract terms.

This is Samsung's first large-scale price adjustment since the significant decline in memory prices in 2024. Statistics show that the average DRAM price fell by about 21% in the second half of 2024, putting revenue pressure on suppliers. This price increase is not only a signal of price stabilization but also reflects dramatic changes in market demand.

U.S. Tariff Policy Triggers Stockpiling Surge

One of the key factors leading to this price adjustment is the new round of tariff policies that the U.S. government is about to implement on semiconductors and electronic components. Although the U.S. is currently negotiating with some trade partners and has announced a 90-day tariff suspension period, companies are stockpiling in advance to avoid future cost increases, resulting in a significant short-term surge in memory demand.

According to reports from MoneyDJ and 9to5Google, Samsung's major customers, including PC, mobile device, and server manufacturers, have reflected this wave of stockpiling in their contracts. These companies are rushing to make large-scale purchases before the tariffs take effect to minimize future production costs. This "rush effect" has directly boosted Samsung's product shipments and provided room for price increases.

SK Hynix and Micron Simultaneously Adjust Prices

Samsung is not the only memory supplier adjusting prices. According to reports from CTEE and Yahoo News Taiwan, SK Hynix also plans to increase its DRAM prices by about 12%. U.S. memory giant Micron Technology has already notified customers in advance of its price adjustments. This suggests that the DRAM market is entering a new phase of price reassessment.

The simultaneous actions of the three major memory suppliers reflect the industry's collective response to changes in supply and demand and policy risks. Since Samsung and SK Hynix together hold nearly 70% market share, their pricing strategies are highly indicative of the global market.

Market Reaction and Industry Dynamics

The price adjustment has set off a chain reaction in the supply chain. According to reports, Taiwanese memory module manufacturers and IC design companies have also begun adjusting their procurement strategies to cope with cost changes. While this hasn't fully impacted end-product prices yet, the supply chain is already reassessing inventory and production plans.

Additionally, Citigroup analyst Christopher Danely pointed out in March 2025 that the mainstream spot price of DDR5 memory has risen nearly 8% since the beginning of the year, marking the largest increase since the first quarter of 2024. This trend aligns with the current price adjustments, indicating a resurgence in demand for high-end memory products.

Industry Background and Supply-Demand Changes

In 2024, the memory market faced dual pressures of oversupply and price collapse. According to industry statistics, the average DRAM price fell by about 21% in the second half of 2024, leading suppliers to cut production to stabilize prices. This price increase can be seen as a strategic adjustment by suppliers in response to rising demand and policy pressures.

Currently, the main demand for DRAM comes from AI servers, mobile devices, and the PC upgrade cycle. Especially against the backdrop of rapid expansion in AI applications, the demand for high-bandwidth memory (HBM) and DDR5 is gradually increasing, further driving structural shifts in the memory market.

References

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