According to the latest reports from a leading Korean industry source, Samsung Electronics has raised its NAND Flash supply prices by more than 100% in the first quarter, a hike far exceeding prior market expectations and highlighting the severe supply‑demand imbalance in the current semiconductor market.
Insiders reveal that Samsung completed negotiations with major customers by the end of last year and began implementing the new pricing system in January. This follows a recent increase in DRAM prices of close to 70%, marking another sharp price swing in the memory market.
The report further indicates that Samsung has already begun new rounds of negotiation with customers for second‑quarter NAND prices, with the market widely expecting the upward price momentum to continue into Q2.
Supply‑Demand Imbalance is the Core Driver of the Price Surge
On the demand side, massive investment in AI infrastructure is significantly boosting enterprise SSD demand, while mobile devices and PCs are accelerating adoption of higher‑performance, larger‑capacity storage solutions. The rapid growth of “edge‑side AI” in particular is further amplifying demand for high‑spec memory chips.
Supply faces clear rigid constraints. Over the past year, the NAND Flash sector has seen no large‑scale capacity expansion, with leading manufacturers including Samsung maintaining cautious investment attitudes. Industry consensus holds that output growth will be extremely limited. Given the long lead times for semiconductor capacity build‑out, short‑term supply increases to curb prices are not feasible.
In terms of inventory, the memory industry underwent a prolonged destocking phase from 2023 to 2024, leaving both channel and customer inventories at historically low levels. As demand recovers, price elasticity is expected to be substantial.
TrendForce notes that the paradigm shift in the AI market is fundamentally reshaping the memory landscape. The global memory semiconductor market is projected to reach $551.6 billion in 2026 and climb further to $842.7 billion in 2027, representing an annual growth rate of 53%.
ICgoodFind : Samsung’s sharp price adjustment reflects sustained tightness in the memory market, with supply‑demand imbalances unlikely to ease soon. The industry chain is advised to plan procurement strategies proactively to navigate market dynamics.
