Samsung Locks In Huge DRAM and HBM Contracts as Chip Prices Surge

Samsung is entering a new phase in the memory market after reportedly securing major long-term agreements for its DRAM and HBM products. With demand from leading technology companies intensifying, the company’s chip division is gaining unprecedented visibility over future supply, while customers may soon face higher costs across smartphones and other devices.

According to a report from Yonhap News, Samsung has signed a five-year memory supply arrangement that will direct most of its general-purpose DRAM and next-generation high-bandwidth memory to major global technology firms. The report claims that about 70% of Samsung’s DRAM output and all of the HBM chips scheduled for production next year have already been allocated. It adds that the remaining 30% of DRAM capacity is attracting aggressive competition among buyers.

Prices are moving sharply alongside the surge in demand. HBM chips are expected to become 150% to 200% more expensive next year, while conventional DRAM is also forecast to rise by double digits in the first quarter of 2027. The trend is delivering a major boost to Samsung’s Device Solutions division, which is benefiting from record profits amid the broader memory shortage.

However, the outlook is less favorable for consumers. Higher memory prices are likely to increase production costs for smartphones, PCs, and other electronics. Samsung’s mobile division may also need to compete for DRAM supply with the same large clients served by the chip business, creating pressure inside the company. As a result, future devices such as the Galaxy S27 lineup could carry higher price tags.