Rumor
Samsung DS Reportedly Rejects Long-Term DRAM Contract with Samsung MX
Monday, December 1, 2025 at 08:53 AM
Samsung's Device Solutions (DS) memory division is rumored to have rejected a request from the Mobile eXperience (MX) smartphone division for a long-term DRAM supply contract. Instead, the divisions must reportedly operate on a much shorter renewal schedule, potentially every three months.
Context
In a significant sign of market tightening, Samsung Electronics' semiconductor arm (Samsung DS) has reportedly rejected a long-term DRAM supply contract from its own mobile division (Samsung MX). The memory division is instead insisting on shorter, 3-month contract renewals. This unprecedented internal move underscores the extreme pricing power memory suppliers now hold, driven by soaring AI-related demand and rapidly diminishing inventories, which for Samsung fell 14.6% in the last quarter.
This internal standoff is forcing Samsung MX to alter its supply chain for flagship products. Reports indicate that U.S.-based competitor Micron is now positioned to be the primary DRAM supplier for the upcoming Galaxy S25 series. For investors, this signals a powerful memory upcycle where even internal synergies are sacrificed for higher margins. The shift suggests significant component cost inflation and supply chain volatility for all smartphone makers heading into 2026, as memory producers like Samsung are discussing price hikes of over 40%.
Sources (36)
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