Gaming: It Looks Like More Memory Price Hikes May Soon Be On The Way, As...

It's going to get worse before it gets better, that much seems clear.

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If you were looking for good news surrounding the ongoing memory crisis, you've clicked on the wrong article. According to South Korean news outlet SEDaily, its sources have informed it that both Samsung and SK Hynix have notified their customers of another second-quarter DRAM price increase, and are currently entering into price negotiations.

Smaller customers (i.e., many of the ones that package DRAM chips on to RAM modules, graphics cards, and more) are "expected to accept significant price increases to secure DRAM supply", according to the outlet.

An "industry insider" speaking to SEDaily said: "Samsung Electronics’ current production capacity can only handle about 60% of the volume due to the continued surge in DRAM demand."

"Customers are also focusing on securing volume", the source says, rather than the price they secure it at, "so there will be no problem with a significant price increase."

Further to that point, the outlet also says that some industry insiders are speculating that some of Samsung and SK Hynix's customers might need to accept a price increase of more than double the previous contract's figures.

With the supply so significantly constrained, and the AI demand showing no signs of slowing, DRAM manufacturers have their pick over which businesses to prioritise when it comes to the best deals.

Small and medium-sized companies now seem to be in the position of having to negotiate their relatively short-term contracts (compared to longer-term contracts agreed upon by larger businesses) within unfavourable pricing conditions—taking deals that would be unthinkable a few years ago in order to guarantee supply.

Keep up to date with the most important stories and the best deals, as picked by the PC Gamer team.

Source: PC Gamer