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Saved February 14, 2026
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Samsung Semiconductor has rejected long-term memory supply deals with its own smartphone division due to high demand from data centers and rising prices. This "chipflation" is expected to lead to increased costs for Samsung phones and other electronics, with prices likely continuing to rise into 2027.
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Computer memory prices are skyrocketing, driven largely by increased demand from the AI sector. Samsung, a major player in both consumer electronics and memory manufacturing, has found itself in a peculiar situation. Its semiconductor division is prioritizing sales to data centers over internal orders from its electronics division, even rejecting requests for smartphone DRAM chips. This decision highlights the disconnect within Samsung’s sprawling corporate structure, where different subsidiaries compete for limited resources.
As Samsung Electronics ramps up production for its 2026 flagship smartphones, it's facing a tough reality. The company wanted long-term pricing and supply agreements for RAM but was met with a rejection. Instead, they secured a short-term deal at higher prices due to what’s being called “chipflation.” This trend isn’t isolated to Samsung; other companies are feeling the pinch too. Lenovo is stockpiling memory supplies to mitigate the impact of rising prices, while Raspberry Pi has raised its prices, citing memory costs as a significant factor.
Forecasts indicate that the situation is unlikely to improve soon. Memory prices have tripled recently, causing some finished products to see price increases of up to 100% within just a month. Experts predict that without a major market collapse, prices could rise further into 2024, with supply constraints potentially lasting until 2027 or beyond. This trend affects not just high-end smartphones but also a wide range of consumer electronics, leading to a broader impact on the market.
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