SK hynix tells customers it will raise DDR5 DRAM prices by 15-20%, Samsung, Micron to follow

SK hynix has just announced its clients that it will be raising DDR5 DRAM prices by 15-20%, something that DRAM rivals Samsung and Micron are 'likely to follow'.

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Why? Because of AI, that's why. More specifically, HBM... and the insatiable AI GPU demand is driving unbelievable demand for HBM which is seeing DRAM manufacturers SK hynix, Samsung, and Micron, all pushing everything they can into HBM production capacity.

In a new report from UDN, we're learning that the supply chain has received a notification from SK hynix that it will be increasing its DDR5 pricing by 15-20%. SK hynix is the second-largest DRAM manufacturer, second to South Korean rival Samsung. Over in Taiwan, local factories including Nanya have started mass production of DDR5, just in time for the price increases, and will benefit first from the higher-priced DDR5 memory. ADATA and TEAMGROUP are also expected ot benefit from the low-price inventory, reports UDN.

Nany's new 16Gb DDR5 memory developed with its in-house 1B process technology has started shipping, taking advantage of the price increases in the early stages of mass production of its new DDR5 chips. Nanya is optimistic that with the three major memory manufacturers -- Samsung, SK hynix, and Micron -- cutting production in the second half of last year, and with generative AI demand still strong, there will be a flow-on effect into various DRAM types and their prices.

• Read more: HBM prices to increase 5-10% in 2025, while DDR5 prices to increase 15-20% for PC gamers

SK hynix is the sole supplier of the fastest HBM for NVIDIA's latest AI GPUs, as well as supplying the largest share of HBM memory chips to NVIDIA. All of SK hynix's HBM production in 2024 is booked up already, and most of the HBM supply in 2025 is sold out... which is forcing not just SK hynix, but all DRAM manufacturers to pull away from producing as many DDR5 DRAM chips, to increase HBM production capacity.

Now... 15-20% higher DDR5 RAM pricing for us all.

TEAMGROUP's current revenue is DRAM-related, accounting for about 70% of the company's revenue, with storage flash memory (NAND flash) accounting for around 30% of TEAMGROUP's revenue. Inside of that, DDR5 DRAM accounts for nearly 60% of the DRAM that TEAMGROUP creates.

UDN talked with a 'legal person" that was "optimistic" that TEAMGROUP will have the opportunity to exceed 70% by the end of the year. ADATA on the other hand, had its chairman Chen Libai expecting that as HBM significantly consumes DRAM factory production capacity, DDR5 and DDR4 prices will "definitely" rise quarter by quarter.

At this state, DDR5 revenue for ADATA sits at around 40% of the total DRAM, with UDN's "legal person" source being again "optimistic" that it will become the winner of this wave of DDR5 price increases.