Samsung using DRAM and HBM shortage to its advantage

A few days ago, we learned that Samsung is hiking the prices of HBM3E memory chips by 20%, as the demand for it is skyrocketing, but the supply has not kept pace. Well, the brand may be milking the memory shortage situation even further. We are now learning that the tech giant is not only hiking the prices of its HBM3E memory chips by 50%, but also the prices of its DRAM chips have surged by 50%.

On X, @jukan05, citing local Korean media, claims that Samsung (and SK Hynix) are demanding 50% higher money for 12-high (12H) HBM3E memory chips from existing customers when renewing supply contracts, as there is an immense shortage of these chips in the market. Separately, the prices of Samsung’s DRAM chips are said to have surged by around 50% in the fourth quarter of the year.

With the demand for GenAI going up, the demand for AI accelerators and HBM has also risen sharply. Typically, there is a higher profit margin on HBM than DRAM. Therefore, two of the three major memory manufacturers around the world, Micron and SK Hynix, have gone all in on HBM and reduced DRAM production. With that, there has been a shortage of DRAM chips in the market.

Samsung, on the other hand, may not have cut the DRAM production (at least significantly) as it is reportedly making more DRAM chips than SK Hynix. As a result, Samsung has been able to monetise on DRAM chips as well, in addition to HBM chips. With that, Samsung has posted record profits in Q4 2025. The brand may enjoy even more profits from the memory division in the near future.