in the middle of running pc The component crisis has seen tech giant Samsung quickly double the price of DRAM it produces for various brands, bringing contract prices on parts like DDR5 RAM closer to $20. Therefore, PC parts shops will be stuck paying a premium for essential components, as Samsung says the sudden price hike is due to the company having no DRAM stock left.
As of this writing, Samsung is the largest business conglomerate in South Korea, and it is one of the leading producers of consumer RAM, along with companies such as SK Hynix and Micron. Samsung's major customers for DRAM include companies such as G.Skill and Corsair. Along with its PC component and smartphone businesses, Samsung is known for manufacturing storage space for PCs, smartphones and game consoles. It accommodates SD cards of various sizes, including the recently launched microSD Express format. Currently, microSD Express cards are used by the Nintendo Switch 2 as the console's main method of expandable storage, with products like Samsung's P9 Express Card selling to consumers looking to add more space at competitive prices.
If you're thinking about buying a Nintendo Switch 2, you don't want to wait too long to pull the trigger.
Skyrocketing RAM costs cast a worrying shadow over the Nintendo Switch 2, as industry prices rise and rumors of console price hikes abound.
PC makers will bear the cost of Samsung's price hike
As the prices of consumer DDR5 RAM kits continue to skyrocket, a new report claims that Samsung has raised the contract prices of the DRAM it produces. According to a Taiwanese media report shared by Twitter user Zhukan05, Samsung has raised its DRAM contract price by more than 100% from about $7 to the current rate of $19.50 per unit. The contract price is a number that represents the bulk pricing rate that manufacturers like Samsung and SK Hynix offer to larger component makers like Corsair. While Samsung sells the actual DRAM chips, the latter companies fit them onto their own printed circuit boards (PCBs) and heatsinks, which they sell to consumers and other companies. However, the ongoing shortage has caused consumer RAM manufacturers to drastically increase their prices, with RAM kits costing more than four times the amount offered before October 2025.
Samsung has said through media reports that it has no remaining stock of DRAM kits, hence why it has chosen to double its contract prices. This change will inevitably affect DDR5 and DDR4 RAM kits that use Samsung components, as Samsung's contract price for DDR4 kits has also increased to $18 per 16GB module. The price hike will also affect Samsung's own smartphones and tablets across the board. One of Samsung's current premium smartphones is the Samsung Galaxy Z Fold 7, priced at $1,999 as of this writing.
Samsung's decision comes at the worst possible time for PC gamers
The surprise announcement from Samsung came days after one of Samsung's main competitors in the DRAM manufacturing space announced a major change in its manufacturing process. On December 3, Micron announced it was exiting the consumer RAM and SSD component business, focusing on making parts for enterprise customers and corporations. As a result, the pivotal lineup of consumer products will cease production on February 28, 2026, ending a 29-year run as one of the leading PC parts brands worldwide. Micron says this is a move to ensure its success in the long term, as it continues to ship DRAM exclusively to AI-based servers that are currently being built. Despite the announcement, Micron assured consumers that it will continue to provide warranty and support for its critical RAM and SSD lineup after the February 28 cutoff.
Since Samsung is also responsible for selling NVMe SSDs like the 990 Pro, storage prices will also increase as the ongoing RAM shortage and crisis continues. As companies like Google and OpenAI continue to open data centers that require DRAM from Samsung and SK Hynix, it remains to be seen when consumers will get relief.
Source: Tom's Guide
