Samsung warns: Memory costs soar, all electronic products face price increases

As the global shortage of memory chips intensifies, Samsung Electronics, the world's largest memory chip manufacturer, has issued a warning that soaring costs may force the entire electronics industry to raise product prices, a trend that will even affect Samsung's own consumer electronics product line. On January 7th, Bloomberg reported that Samsung Electronics President and Global Marketing Chief Wonjin Lee stated in an interview that the semiconductor supply issue will affect everyone, and component costs are rising. The report noted that although the company does not wish to pass the burden onto consumers, Lee admitted that the company has had to start considering repricing its products. This indicates that a wide range of electronic consumer goods, from smartphones and laptops to connected home appliances, may face a wave of price increases. According to a previous article from Wall Street Insight, the Korea Economic Daily recently cited sources saying that Samsung Electronics and SK Hynix plan to significantly raise server DRAM prices by 60% to 70% in the first quarter of 2026 compared to the fourth quarter of 2025, and have proposed similar price increases to personal computer and smartphone customers. Cost Pressure Facing the Entire Industry Although Samsung, as the world's largest memory manufacturer, is in a more favorable position compared to competitors that cannot manufacture their own memory for their products, its vast product portfolio—from tiny wireless earbuds to 130-inch video walls—remains vulnerable to the surge in core component costs. Wonjin Lee pointed out at the CES exhibition in Las Vegas that Samsung is showcasing its vision for AI-enhanced interconnected products, but is also facing the real challenge of rising production costs. Wonjin Lee emphasized that the semiconductor supply issue is not just a challenge for Samsung; it will "affect everyone." The report indicated that this pressure has already manifested across the tech industry. Major brands like Dell and Xiaomi have issued warnings about potential price increases. To cope with supply uncertainties, other manufacturers like Lenovo began stockpiling memory chips as early as last year. The boom in artificial intelligence data center construction is the core driver pushing up costs. This trend has led to unprecedented demand for high-bandwidth memory, which, while becoming a lucrative growth point for chip manufacturers, has severely squeezed the supply chain for chips used for other purposes. The industry generally expects that, against the backdrop of an explosion in AI computing power and expanded data center investments, DRAM prices will maintain strong momentum in the coming years. Industry forecasts suggest that DRAM prices are expected to continue to rise in a stepwise manner on a quarterly basis before 2027. Counterpoint Research also predicted in November that the price increase for memory modules will reach 50% before the second quarter of this year. Although cost pressures are weighing on the consumer end, for chip manufacturers, this means a significant enhancement in profitability. Given that Samsung and SK Hynix have driven the Korean stock market to new highs, brokerages such as Citigroup and Morgan Stanley have raised their earnings expectations for these two companies