Samsung Prioritizes Data Center Clients as Memory Costs Surge

The article reports on a growing crisis in the memory chip market, where skyrocketing RAM prices have forced major manufacturers like Samsung to prioritize sales to higher-paying clients. According to sources, Samsung Semiconductor recently declined an order from Samsung Electronics, its own consumer electronics division, for DRAM chips destined for next-generation Galaxy smartphones. The reason is the ongoing ‘AI bubble,’ which has caused unprecedented demand for high-performance memory used in artificial intelligence data centers. With data center companies willing to pay premium prices, chipmakers such as Samsung, SK Hynix, and Micron are channeling resources toward that market segment.

Samsung Electronics, responsible for Galaxy devices, reportedly had to renegotiate short-term contracts at significantly increased prices after attempts to secure long-term supply agreements were rejected. This internal corporate conflict underscores the severity of current market conditions — where even a company as vertically integrated as Samsung faces internal competition for resources. Analysts expect consumers will face higher smartphone and electronics prices, though perhaps less steep than the surge in standalone RAM modules.

Other tech players like Lenovo and Raspberry Pi are also struggling with component costs. TeamGroup’s forecast indicates memory prices have tripled, sometimes rising 100% within a month, and may not stabilize until 2027 or later. The situation encapsulates both the fragility of the tech supply chain and the distorting effects of speculative booms driven by AI expansion.