The tariffs imposed by US President Donald Trump yesterday have shocked financial markets. They also have the potential to upend global supply chains and start off a trade war, with many fearing that it may even lead to a global recession.
Even though semiconductors have been initially exempt from the tariffs, there's fear that tariffs may be imposed on these chips through a specialized regime down the line. Samsung's trying to get ahead of that with a price hike of up to 5% for its DRAM and NAND flash memory products.
Samsung joins others in hiking up prices of key memory chips
Samsung hadn't been too keen on raising DRAM and NAND flash prices in recent months as the market grappled with oversupply. Chinese memory makers also flooded the market with cheaper legacy memory products, often priced at half of what Samsung charges.
However, with the threat of tariffs looming, semiconductor customers have started stockpiling chips to mitigate the tariff impact. Rapid advancements in the artificial intelligence space have also led to a demand increase, particularly in China.
Samsung Electronics has now reportedly hiked up its DRAM and NAND flash prices by 3-5%. It's said to be in the same range as other global semiconductor companies. Micron, one of Samsung's competitors in this segment, has already announced a price increase for its products as well.
Industry watchers believe that there's a chance for prices to go higher in the second half of this year if specialized tariffs are implemented on semiconductors. Memory makers have also reduced supply and that's likely going to contribute to higher prices as well.