The global memory chip market is undergoing a significant transformation in pricing rules. According to a recent report, leading memory manufacturers including Samsung, SK Hynix, and Micron are implementing a new contract model. This approach not only shortens contract durations to quarterly or even monthly terms but also introduces "post-settlement" clauses. Under these terms, customers may be required to make additional payments based on market prices even after supply has been completed. This change primarily targets large North American technology companies.
The new contract model allows suppliers to adjust charges after delivery based on prevailing market prices. For example, if the contracted price for DRAM was 100 won and the market price doubles a year later, the customer would need to pay an additional 100 won to cover the difference. This marks a fundamental shift from traditional fixed-price models toward dynamic pricing mechanisms in the memory industry.
Industry sources anticipate that these supplier-favorable contract terms will persist at least until the second half of 2026, as memory chip prices are expected to continue their upward trend. Even technology giants with massive purchasing power, such as Apple, are not immune to these impacts. There remains potential for further price increases on memory procurement for Apple beyond the first half of 2026. Tight supply and price fluctuations are reshaping negotiation dynamics in the memory market, with the balance of power shifting decisively from buyers to sellers.
The fundamental change in pricing mechanisms is accompanied by a significant shortening of contract durations. The traditional pricing model for memory products is being overturned. Previously, prices for products like DRAM and NAND were typically set at the beginning of the supply contract, with adjustments usually limited to around ±10% during quarterly negotiations, even if market conditions changed.
The new model, however, introduces "post-settlement" clauses that allow for payment adjustments based on market prices even after supply is completed. This effectively enables suppliers to capture gains from price increases. The mechanism completely breaks the certainty of fixed-price contracts, transferring market risk entirely to the buyer.
Alongside changes in payment terms, contract durations are also being substantially shortened. Although memory buyers seeking to expand AI infrastructure have pursued contracts of two years or longer to ensure stable supply, many agreements have been reduced to quarterly or even monthly terms due to limited inventory and price volatility.
Industry insiders indicate that these supplier-advantageous agreements will likely remain in place at least through the second half of this year, as memory price growth is expected to stay strong. The shorter contract durations allow suppliers to adjust prices more frequently in response to market conditions, further strengthening their pricing dominance.
Even major technology companies are struggling to avoid the price surge. While Apple typically signs long-term memory supply agreements, the current memory shortage means pricing is only locked in until the first half of 2026. This leaves room for further price increases later this year when the new flagship iPhone 18 is launched.
Reports indicate that Samsung and SK Hynix raised LPDDR prices for iPhone shipments in the first quarter, with Samsung's prices increasing by over 80% quarter-over-quarter and SK Hynix's by approximately 100%. This demonstrates that even super-buyers like Apple are losing their traditional bargaining advantage amid current supply constraints.
With limited supply, major memory manufacturers are tightening control measures. Micron, SK Hynix, and Samsung are strictly reviewing customer orders, requiring disclosure of end customers and order volumes to prevent hoarding or overbooking from further disrupting the market.
This review mechanism shows that suppliers not only dominate pricing but also exercise greater control over supply allocation, further consolidating the current seller's market structure.
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