News

Memory Price Hikes May Persist Beyond 2028 as Samsung and SK Hynix Maintain Cautious Capacity Expansion Stance

Friday, November 28, 2025 at 04:07 AM

A news report suggests that the cautious approach to business expansion and capacity increases by major memory manufacturers Samsung and SK Hynix could lead to sustained memory price increases extending past 2028.

Context

Memory chip giants Samsung Electronics and SK Hynix, which together command roughly 70% of the DRAM market, are prioritizing profitability over aggressive capacity expansion. In recent investor meetings, both companies signaled a conservative capital expenditure strategy to avoid oversupply. This disciplined approach is fueling expectations that the current memory “super-cycle,” driven by intense AI demand, could see prices continue to rise well past 2028. The supply constraint is already acute, with Samsung reportedly able to fulfill only about 70% of its DRAM orders. Both companies are securing contract price hikes of roughly 40% quarter-over-quarter and are favoring short-term deals to capitalize on rising prices. For investors, this signals a period of sustained high margins for memory producers, but also indicates significant cost pressure for PC, smartphone, and server manufacturers who rely on their components.