Price doubled again! Korean media: Samsung Electronics expects Q2 NAND prices to rise by 100%

The global AI investment boom is driving a surge in storage demand, exacerbating the imbalance in the NAND market supply and demand. According to the Seoul Economic Daily, Samsung Electronics plans to set the price increase for its main NAND products in the second quarter at a level similar to that of the first quarter of this year.

According to an article previously published by Wall Street Watch, Samsung Electronics raised NAND prices by 100% in the first quarter, and DRAM prices were also raised by 100%. This means that the NAND supply price has cumulatively increased by about two times compared to the end of last year.

According to the Seoul Economic Daily, citing industry professionals, the bargaining power of memory manufacturers has reached unprecedented heights, and downstream demand manufacturers will have to accept the prices proposed by Samsung Electronics. Meanwhile, other manufacturers such as SK Hynix and Kioxia are also preparing for further price increases.

AI Inference Demand Explodes, NAND in Short Supply

The core driving force behind the significant rise in NAND prices comes from the expansion of storage demand brought about by the evolution of AI technology. As AI iterates from the data training phase to the inference phase of understanding and processing user requests, the demand for massive data storage has significantly increased, thereby enhancing the strategic value of NAND.

At the same time, large technology companies continue to ramp up investments in AI data center construction, leading to a sharp increase in procurement demand for storage devices, further driving up NAND prices.

Market research firm DRAMeXchange data shows that the average fixed trading price of 128Gb multi-level cell (MLC) NAND general products soared to $12.67 last month, a month-on-month increase of 33.9%, and a staggering increase of 452.3% compared to a year ago.

Supply Side Continues to Contract, Manufacturers' Bargaining Power Significantly Strengthened

The proactive contraction on the supply side is another key factor behind the strong price momentum this time. Samsung Electronics and SK Hynix, the top two players in the NAND market, have recently shifted their resource focus to high-bandwidth memory (HBM) and other high-value-added products, significantly reducing NAND production capacity. The production cuts initiated last year are still being released, and the structural tightening of market supply is unlikely to reverse in the short term.

According to the Seoul Economic Daily, in the context of manufacturers holding strong pricing power, even if the final transaction prices vary slightly due to different customers, the price increase range determined by Samsung Electronics will generally be accepted by the market, and the overall upward trend in NAND prices is expected to continue for some time.

Price Increase Trend Spreads, Strong Industry Follow-Up Expectations

As the global leader in the NAND market, Samsung Electronics' pricing trends have always served as a barometer for the industry. Industry professionals have revealed that major competitors such as SK Hynix and Kioxia are preparing to follow suit with price increases, and the overall price increase effect in the NAND market has begun to take shape.

For investors, the continued rise in NAND supply prices is expected to directly improve the profitability of related memory manufacturers. Against the backdrop of the AI infrastructure investment cycle not yet peaking and leading manufacturers shifting their production focus towards HBM, the tight supply and demand dynamics and strong pricing in the NAND market may persist for a longer period