Samsung is set to double the price of NAND memory for SSDs, following a previous increase of the same magnitude this quarter.
After RAM prices skyrocketed, NAND is now following suit with exuberant price hikes. According to Sedaily, Samsung indicates it will double the price of NAND in the second quarter. This marks the second 100% increase, following an earlier rise at the start of this year. In 2024 alone, NAND is set to become 200% more expensive. Compared to a year earlier, the price increase will likely exceed a factor of four.
NAND is the type of memory that makes up SSDs. Samsung is not only one of the world’s largest manufacturers of RAM, but also of NAND. The increase is a new blow for PC and smartphone manufacturers and their end customers. Just as with RAM, it is inevitable that the price increase for NAND and SSDs will be passed on. Expect device configurations with less internal storage as well.
RAM and NAND for AI
The culprit is now well-known. A handful of large AI companies are swallowing up production capacity. On one hand, servers for AI training and inference require massive amounts of (HBM) RAM. On the other hand, these expensive systems must be supplied with data, and traditional HDDs are too slow for that purpose. To feed servers equipped with purchased RAM, the AI industry must now also buy up NAND on a large scale.
As long as the companies behind AI data centers have enough money to buy RAM and NAND at high prices, traditional users will be left holding the short end of the stick. Meta gets its latest Llama LLM, but the local SME has to pay twice as much for a workstation.
Samsung is not the only one raising prices. Just like RAM, NAND is a closed market with only a few key players. SK Hynix is also active in both segments and will in all likelihood follow this strategy.