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

# Source: Wall Street Insights

By Dong Jing

The president of Samsung Electronics, the world’s largest memory chipmaker, has warned that semiconductor supply issues will impact everyone, with component costs on the rise. Although Samsung is seeking to avoid passing on cost burdens, the company has been forced to consider repricing its entire product range. This signals that a broad range of consumer electronics—from smartphones and laptops to connected home appliances—may be on the verge of a price hike wave.

As the global shortage of memory chips intensifies, Samsung Electronics, the world’s leading memory chip manufacturer, has issued a warning that soaring costs could force price increases across the entire electronics industry, a trend that will even spread to Samsung’s own consumer electronics product lines.

On January 7, Bloomberg reported that Wonjin Lee, President and Global Chief Marketing Officer of Samsung Electronics, stated explicitly in an interview that semiconductor supply problems will affect everyone, and component costs are climbing.

The report noted that while the company is reluctant to pass the burden on to consumers, Lee admitted that Samsung has had to start considering repricing its products. This indicates that a wide array of consumer electronics—including smartphones, laptops and connected home appliances—may be facing a round of price increases.

According to a previous report by Wall Street Insights, *The Korea Economic Daily* cited sources familiar with the matter as saying that Samsung Electronics and SK Hynix plan to raise server DRAM prices by a substantial 60% to 70% in the first quarter of 2026 compared with the fourth quarter of 2025, and have proposed similar price hike plans to PC and smartphone clients.

## Cost Pressures Sweep the Entire Industry

As the world’s largest memory chip manufacturer, Samsung is in a more favorable position than competitors that cannot produce memory chips in-house for their own products. However, its extensive product portfolio—ranging from wireless earbuds to 130-inch TV walls—remains vulnerable to the soaring costs of core components.

Speaking at the CES exhibition in Las Vegas, Wonjin Lee pointed out that while Samsung is showcasing its vision for AI-enhanced connected products, the company is simultaneously grappling with the real challenge of rising production costs.

Lee emphasized that semiconductor supply issues are not just a challenge for Samsung; they will "affect everyone".

The report noted that this pressure has already manifested across the entire technology industry. Major brands such as 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 AI data center construction is the core driver behind the cost surge. This craze has generated unprecedented demand for high-bandwidth memory, which has become a highly profitable growth point for chipmakers, but has also severely squeezed the supply chain of chips used for other purposes.

The industry widely expects that against the backdrop of booming AI computing power and expanding data center investment, DRAM prices will maintain a strong upward trend in the coming years.

Industry forecasts suggest that DRAM prices are expected to register quarterly step-by-step increases through 2027. Counterpoint Research also predicted in November that the price of memory modules will rise by 50% by the second quarter of this year.

While cost pressures are weighing on the consumer sector, they mean a significant improvement in profitability for chip manufacturers. Given that Samsung and SK Hynix have driven South Korea’s stock market to new highs, brokerage firms such as Citigroup and Morgan Stanley have raised their profit forecasts for the two companies.

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