AI Boom Sparks Global Memory Chip Crisis: Samsung Hikes Prices Up to 60% and Smartphones Face a 2026 Price Shock

November 17, 2025
AI Boom Sparks Global Memory Chip Crisis: Samsung Hikes Prices Up to 60% and Smartphones Face a 2026 Price Shock

The AI race that’s powering chatbots, image generators, and massive data centers is about to hit you in the wallet. A wave of reports over the last few days – capped by new analysis published today – paints a clear picture: a global memory chip crunch is here, and it’s set to make smartphones, PCs, and SSDs noticeably more expensive through 2026. [1]

From Samsung quietly raising memory prices by as much as 60%, to smartphone brands freezing RAM orders, to PC makers panic‑buying modules for 2026, every part of the supply chain is feeling the squeeze. [2]


Samsung Raises Memory Chip Prices by Up to 60%

In an exclusive report, Reuters revealed that Samsung Electronics has increased prices on certain memory chips – particularly for servers – by 30% to 60% compared with September, as demand for AI data centers soaks up supply. [3]

These aren’t niche parts. They include DRAM used in AI servers and high‑performance systems, the same ecosystem that underpins cloud AI services. The Reuters report notes that Samsung’s move comes amid a global race to build AI data centers, and investors have cheered the news, with memory makers’ shares rallying on expectations of fatter margins. [4]

TrendForce, in a new report published today, connects those price hikes to a broader “memory supercycle” that is now spreading across the entire chip supply chain. DRAM, NAND, and even NOR flash are simultaneously tightening, with DDR4 in particular facing a projected shortfall as suppliers reallocate capacity to newer standards like DDR5 and high‑bandwidth memory (HBM) for AI accelerators. [5]


Smartphone Brands Slam the Brakes on RAM Orders

If you’re planning to buy a new phone in 2026, the trouble starts here.

A detailed report from Digital Trends explains that major smartphone makers including Xiaomi, OPPO, and Vivo have temporarily halted new memory chip purchases after being quoted price increases of up to 50% by suppliers such as Micron, Samsung, and SK hynix. Some brands reportedly have less than two months of memory inventory left, and certain manufacturers have under three weeks of DRAM on hand. [6]

The same piece notes that Samsung stopped publicly quoting prices for DDR5 in October, a move that triggered a 25% jump in spot prices within a week and set off industry‑wide alarm bells. [7]

Industry coverage today from PhoneWorld and other outlets echoes the warning:

  • Memory now accounts for up to 30% of the bill of materials (BOM) of a modern smartphone.
  • Analysts expect mid‑range phones to rise by roughly $15–$30, and high‑end models by $50–$70, if current DRAM and NAND price spikes stick.
  • To keep sticker prices “stable,” some brands may cut base RAM or storage, offering 128GB where 256GB had become normal. [8]

In other words, you’ll either pay more for the same storage, or get less storage for the same price.


New TrendForce Data: Memory Crunch Spreads Across the Chip Ecosystem

Two fresh TrendForce notes published today tie all of these threads together and show how far the problem reaches beyond phones. [9]

  1. “Memory Crunch Ripples Across Chip Supply Chain” (Nov 17, 2025)
    • DRAM, NAND, and NOR flash are all in a synchronized supply crunch.
    • DDR4 supply is especially tight as fabs accelerate the phase‑out of older nodes and shift capacity to DDR5 and HBM.
    • Analysts cited by TrendForce estimate DDR4 could face a shortfall of around 70,000 wafers by the end of 2025, with 2026 unlikely to fully fix the gap. [10]
    • On the storage side, hyperscale cloud providers are reportedly looking to replace parts of their HDD‑based “cold storage” with QLC SSDs, potentially pushing NAND prices in 2025–2026 to rival DRAM gains. [11]
  2. “Memory Shortage Triggers Order Caution from Smartphone Clients, Pressuring SMIC” (Nov 17, 2025)
    • China’s foundry giant SMIC reported strong Q3 results but warned that tight memory supplies are making smartphone clients cautious about new orders. [12]
    • Smartphones fell from 25.2% to 21.5% of SMIC’s revenue quarter‑on‑quarter, the only major segment to decline. [13]
    • Co‑CEO Haijun Zhao said memory shortages are creating a bottleneck: even when other components are ready, phones can’t be assembled without DRAM and flash, leading SMIC to delay some smartphone shipments and prioritize more urgent, supply‑constrained products. [14]
    • With handset prices still relatively stable at retail, smartphone brands are reportedly pressuring non‑memory chip suppliers to cut prices in 2026 to offset soaring memory costs – potentially squeezing foundry margins. [15]

The picture that emerges: memory has become the chokepoint component across the entire electronics industry, and everyone downstream is negotiating around it.


PC and Gaming Brands Are Panic‑Buying RAM

It’s not just phone makers feeling the heat.

Tom’s Hardware reports that Asus, MSI, and other major PC brands and system integrators are “panic‑buying” memory chips and modules as DRAM and NAND shortages worsen. Many are rushing into the notoriously volatile spot market – usually used by smaller buyers – to stockpile RAM for 2026, a sharp break from their usual reliance on long‑term contracts. [16]

According to that report:

  • Asus says its DRAM inventory (both components and finished products) is only enough for about two months of production, covering the rest of 2025 but leaving 2026 exposed.
  • Large brands are now competing with smaller players in the open market, pushing up prices for retail RAM kits and SSDs that consumers buy for gaming PCs. [17]

Meanwhile, a PC Gamer piece cites Silicon Motion CEO Wallace C. Kou warning that “HDD, DRAM, HBM, [and] NAND” are all headed for severe shortage in 2026, with most of the company’s capacity already sold out. [18]

Kou also notes that:

  • AI servers are swallowing available DRAM and NAND.
  • Memory module makers and related suppliers have reported record‑high financial results as prices spike.
  • Brands like Asus and MSI are “aggressively stockpiling” modules to ride out what PC Gamer calls a potential “pricing apocalypse” for RAM and SSDs. [19]

For PC gamers and creators, that likely means higher prices on pre‑built systems and upgrades, with less attractive deals on high‑capacity RAM and SSDs throughout 2026.


How the AI Race Rewired the Memory Market

So what changed? In short: AI data centers now set the price of memory.

Several recent analyses – including a November 6 market‑intelligence piece from Fusion Worldwide – argue that the traditional DRAM “boom‑and‑bust” cycle has been broken. Historically, rising prices would eventually tamp down PC and smartphone demand, giving fabs time to catch up. In this cycle, AI demand is “price inelastic”: hyperscalers keep buying even as prices rise, anchoring the entire DRAM and HBM pricing structure. [20]

Key structural shifts highlighted by analysts:

  • HBM has become the center of the DRAM business model. Each new AI GPU generation uses taller and denser HBM stacks, consuming far more wafer capacity per chip. That capacity is pulled from DDR4 and DDR5 lines. [21]
  • DDR4 is “functionally unavailable” in many channels. Tier‑two suppliers are running flat out, and major makers are allocating minimal upstream capacity to legacy DRAM, leaving the spot market thin and expensive. [22]
  • NAND is the next pressure point. Underinvestment in NAND tooling, combined with AI workloads shifting data from HDDs to SSDs, has already doubled prices for some SSD‑grade NAND in about six months, according to industry commentary from TweakTown and Digitimes. [23]
  • Memory CapEx has lagged: memory’s share of total wafer‑fab equipment spending has fallen from nearly half to around one‑third in recent years, even as AI workloads balloon. [24]

The result is a structural shortage, not just a temporary blip. Even if memory makers green‑light new fabs today, most experts estimate 18–24 months before that capacity meaningfully hits the market. [25]


What This Means for Your Next Smartphone

Putting it all together, what should buyers expect?

1. Higher Prices on Mid‑Range and Flagship Phones

Based on BOM breakdowns and current contract quotes:

  • Mid‑range smartphones: expected to climb by roughly $15–$30 as DRAM and NAND prices remain elevated.
  • Flagships: could see $50–$70 higher launch prices, particularly for models with 12GB+ RAM and 512GB/1TB storage tiers.
  • Foldables: likely to face the steepest increases because they typically ship with more memory and storage by default. [26]

2. Less Storage or RAM at the Same Price

To avoid scaring shoppers with big price jumps on shelves, many brands are expected to quietly tweak specs instead:

  • Base models that might have offered 256GB storage could fall back to 128GB.
  • RAM configurations may be trimmed from 12GB to 8GB, especially outside flagship lines.
  • Some models may retain headline capacities, but at the cost of cutting elsewhere (e.g., slower storage, fewer camera sensors, or less aggressive promotional discounts). [27]

3. Possible Delays and Regional Gaps

Supply‑chain reports suggest some Android OEMs may:

  • Delay launches into late 2026 or stagger releases by region to stretch limited memory allocations.
  • Prioritize high‑margin markets first, leaving budget‑sensitive regions waiting longer for new models. [28]

Impact on PCs, Laptops, and SSDs

If you’re planning a PC or console adjacent upgrade, the same forces matter.

  • Desktop and laptop RAM: DRAM prices have surged triple‑digit percentages year‑over‑year in some segments, and module makers are openly benefiting from the AI‑driven supercycle. [29]
  • Gaming PCs: As Asus, MSI, and others stockpile RAM, retail memory kits and pre‑built gaming systems are likely to stay expensive, with fewer steep discounts than PC builders enjoyed in 2023–24. [30]
  • SSDs and external storage: NAND flash pricing for SSDs has roughly doubled in the last six months according to storage makers and controller vendors, with some CEO commentary warning that high‑capacity NAND supply is already effectively sold out through 2026. [31]

And as PC Gamer’s coverage bluntly puts it, HDD, DRAM, HBM, and NAND all moving into shortage at once is something the industry has “never seen before” – a rare case where every major memory category is tight simultaneously. [32]


How Long Will the Memory Supercycle Last?

Most of the data points landing today and in recent weeks converge on the same rough timeline:

  • Through at least mid‑2026:
    • TrendForce and other trackers see DRAM and NAND shortages worsening into Q1–Q2 2026, with elevated prices baked into contracts. [33]
    • Lead times for some LPDDR5X smartphone DRAM have stretched to 26–39 weeks, meaning orders placed now don’t arrive until mid‑2026. [34]
  • New capacity impact: late 2026–2027:
    • Memory makers and third‑party analysts estimate 18–24 months from fresh investment to meaningful relief, suggesting 2027 is the earliest realistic date for a fully normalized market. [35]
  • Risk of “daily pricing” in spot markets:
    • In China’s Huaqiangbei market, TrendForce reports that 16GB DDR4 modules soared 160% in October, with traders saying it now feels like “a new price every day.” [36]

In short: this isn’t a short‑term spike – it’s a multi‑year reshaping of the memory landscape driven by AI.


What Consumers Can Do Right Now

You can’t fix global supply, but you can be strategic:

  1. Don’t wait forever if you already planned an upgrade.
    If your phone or PC is on its last legs and you see a fair deal, it may be safer to buy now rather than gamble on price drops that are unlikely before 2027.
  2. Prioritize RAM and storage over small spec bumps.
    Given memory’s role as the bottleneck, choosing 256GB over 128GB storage or 16GB over 8GB RAM will likely matter more than marginal camera or CPU upgrades over the next few years.
  3. Consider last‑gen or refurbished devices.
    2024–2025 flagships and gaming laptops that were built before the worst of the crunch may offer better memory configurations for less money.
  4. Watch for “silent downgrades.”
    Compare RAM and storage on new models against last year’s versions. A phone that looks cheaper at launch may simply have less memory.
  5. For PC builders: buy in pairs.
    If you think you’ll need more RAM or another SSD later, it may be cheaper overall to buy matched kits now than to add mis‑matched modules into an even more expensive market in 2026.

The AI boom isn’t just changing software – it’s rewriting the economics of hardware. From Samsung’s 60% memory price hikes to smartphone brands freezing RAM orders, today’s reports make one thing clear: the next generation of AI‑ready phones and PCs will come with a hidden memory tax, and consumers around the world are about to pay it.

ChatGPT AI assistant that is the size of a card?? #amazon #amzonfinds #gadgets #chatgpt

References

1. www.digitaltrends.com, 2. www.reuters.com, 3. www.reuters.com, 4. www.reuters.com, 5. www.trendforce.com, 6. www.digitaltrends.com, 7. www.digitaltrends.com, 8. www.digitaltrends.com, 9. www.trendforce.com, 10. www.trendforce.com, 11. www.trendforce.com, 12. www.trendforce.com, 13. www.trendforce.com, 14. www.trendforce.com, 15. www.trendforce.com, 16. www.tomshardware.com, 17. www.tomshardware.com, 18. www.pcgamer.com, 19. www.pcgamer.com, 20. www.fusionww.com, 21. www.fusionww.com, 22. www.fusionww.com, 23. www.digitimes.com, 24. www.fusionww.com, 25. www.fusionww.com, 26. www.digitaltrends.com, 27. www.findarticles.com, 28. www.trendforce.com, 29. www.tomshardware.com, 30. www.tomshardware.com, 31. www.tweaktown.com, 32. www.pcgamer.com, 33. www.trendforce.com, 34. www.trendforce.com, 35. www.fusionww.com, 36. www.trendforce.com

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