The price of universal DRAM has recently been on the rise, and demand for high bandwidth memory (HBM) is increasing due to the artificial intelligence (AI) boom originating from the Middle East, which is expected to have a positive impact on the performance of Samsung Electronics and SK hynix. In particular, there have been ongoing orders from global corporations that are trying to accumulate DRAM inventory in preparation for tariff wars, and with the successful transaction of large-scale AI semiconductors between NVIDIA and Saudi Arabia, positive benefits for domestic memory semiconductor companies are anticipated.
According to the industry on the 19th, Samsung Electronics reportedly raised the prices of older DDR4 DRAM and DDR5 DRAM by double digits earlier this month. SK hynix is also said to have increased the prices of consumer DRAM by about 12%. Following Micron's letter to customers regarding its price increase policy last month, there has been a spreading atmosphere of price hikes across the market.
Since last month, the average selling price (ASP) of DRAM has also been on the rise. According to market research firm DRAM Exchange, the average fixed transaction price for universal PC DRAM products (DDR4 8Gb 1Gx8) in April was $1.65, soaring 22.22% from the previous month. This marks a return to an upward trend after five months.
The industry reports that major customers have been stockpiling DRAM inventories ahead of the impending Trump-era tariff implementation, leading to price increases due to surging demand. Major U.S. customers are in a mood of 'let's secure inventory for now' to avoid the effects of tariffs. The 'Egu Hwan Sin' subsidy policy aimed at boosting domestic consumption in China is also benefiting the demand from Chinese PC and mobile companies. Notably, older DRAM has seen a sharper increase compared to the new DDR5 products due to a prolonged period of stagnation.
Kim Jae-jun, Vice President of Samsung Electronics' Memory Business Division, noted during the first-quarter performance conference call on the 30th of last month that 'Due to global tariff concerns, the prebuild of finished goods has expanded, leading to much quicker depletion of customer component inventories than originally anticipated.' For Samsung Electronics, which is heavily affected by universal memory prices, this sets the stage for a rebound in second-quarter performance.
Despite uncertainties in the semiconductor market, high-value memory product lines are also expected to continue their upward trend. Both the prices of universal DRAM and HBM are projected to soar. Recently, there have been forecasts that NVIDIA's large-scale supply contract with Saudi Arabia will spark a second AI memory boom.
Earlier on the 13th (local time), NVIDIA announced that it had signed a contract for the construction of a 500-megawatt (MW) AI data center with Humain, an AI startup established by the Saudi Public Investment Fund (PIF). NVIDIA plans to supply around 18,000 GB300 graphics processing units (GPUs) equipped with its latest chip 'Blackwell Ultra' over the next five years.
The industry says that NVIDIA has reportedly set the price for SK hynix's HBM3E (5th generation HBM) 12-layer chip, which will be equipped on Blackwell Ultra, more than 60% higher than that of the existing HBM3E 8-layer chip. It appears that NVIDIA has raised the price to quickly secure quantities as it advances the launch schedule for Blackwell Ultra to the first half of this year.
The securities industry also expects SK hynix, which supplies HBM3E 8-layer and 12-layer chips to NVIDIA, to continue posting record results in the second quarter. Kim Kwang-jin, a researcher at Hanwha Investment & Securities, said, 'This year, SK hynix's total HBM shipment volume is expected to reach 13.7 billion gigabits (Gb), with NVIDIA accounting for over 70% of that,' adding that 'SK hynix's dominance in the HBM market is expected to continue until next year.'