Memory-related stocks opened sharply higher in Hong Kong trading. At the time of writing, GigaDevice Semiconductor (03986) rose 5.39% to HK$387, while Montage Technology (06809) gained 5.26% to HK$176. The rally follows market reports indicating that Samsung Electronics Co., Ltd. has finalized first-quarter DRAM supply pricing with key customers, raising average prices for server, PC, and mobile DRAM by approximately 100% compared to the previous quarter—effectively doubling last quarter’s rates, with certain customers and products seeing increases exceeding 100%. According to industry sources cited in the report, negotiations have largely concluded, with some overseas clients having already completed payments. This latest adjustment represents a significant expansion from the 70% increase discussed in January, climbing roughly 30 percentage points within a single month. Supply contract cycles, traditionally negotiated annually, have now been compressed to quarterly agreements, and in some cases even require monthly adjustments—reflecting the severity of supply-demand imbalances. Notably, the price hikes are not limited to Samsung Electronics Co., Ltd.. Industry sources indicate that SK Hynix and Micron have also settled first-quarter supply contracts with similar increases, signaling a clear pattern of collective price adjustments by the three major memory manufacturers. Looking ahead, DRAM and NAND prices are expected to continue rising in the second quarter, though the pace may moderate. Nevertheless, the upward price trend appears irreversible. For downstream customers, the persistent increase in memory procurement costs is set to further elevate the overall cost structure of servers and end-user devices.
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