Samsung Electronics has sharply raised prices for several key memory chips, lifting contract rates by 30% to as much as 60% compared with September amid an increasingly acute global shortage driven by the rapid buildout of AI data centres, according to people familiar with the increases. The move underscores how demand for AI-related hardware continues to outstrip supply, pushing buyers into paying steep premiums for server-grade DRAM.Info via Reuters reporting. The price hikes follow Samsung’s unusual decision to delay its October pricing announcement, typically issued monthly, as it reassessed supply conditions. DDR5 modules used in servers saw some of the steepest jumps: 32GB units climbed from $149 in September to $239 in November, while 16GB and 128GB equivalents rose roughly 50%. Prices for 64GB and 96GB modules increased by more than 30%.The surge in memory costs is adding pressure on major server builders, cloud operators and device manufacturers, with industry distributors reporting that customers are accepting far lower allocations of product than they need. Some have resorted to panic buying, further tightening the market. Companies such as Xiaomi have warned that rising memory prices are pushing up smartphone production costs, while chipmaker SMIC noted that buyers are delaying orders for other components because memory is absorbing so much of their budgets.The shortage has worked to Samsung’s advantage. Although the company has lagged rivals in producing advanced AI-specific chips, its relatively slower shift has left it better positioned on memory availability and pricing power. Analysts say Samsung is expected to raise quarterly contract prices by 40–50% through the end of the year, outpacing industry averages. The firm also announced plans to build a new production line in South Korea to meet longer-term AI-driven demand.Shares of Samsung, SK Hynix and U.S. chipmakers rallied following the reports, recovering ground lost earlier on concerns about stretched AI valuations. This article was written by Eamonn Sheridan at investinglive.com.