Samsung vs. Samsung: Confusion swirls over alleged RAM supply dispute

Alfonso Maruccia

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WTF?! According to a report from Korean sources, Samsung's own subsidiaries have been clashing over the pricing of new memory chip supplies. RAM has become so expensive that even internal divisions are reportedly being denied additional inventory unless they agree to pay significantly higher prices.

Samsung Electronics, one of the world's largest technology companies, was recently denied a new shipment of RAM by Samsung Semiconductor Global, according to industry sources. The two Samsung subsidiaries were reportedly pushed into negotiating a new supply plan at a higher price, a consequence of the ongoing AI-driven spending boom that has made many technology components increasingly unaffordable for typical consumers.

Samsung Electronics produces smartphones, tablets, computers, and a wide range of consumer devices. With new product lines planned for 2026, the company needs a steady supply of memory chips to maintain its production schedule. Its first stop was Samsung Semiconductor Global, an arrangement that would normally be straightforward given both operate under the same corporate umbrella.

However, sources claim that internal cooperation is no longer as simple. Samsung Electronics requested a full year's worth of RAM supplies, but Samsung Semiconductor Global rejected the request, instead pushing for a quarterly allocation. Ultimately, the two divisions reportedly settled on a short-term agreement at elevated prices.

A Samsung subsidiary refusing to discount chip supplies for another division within the same corporate structure would be highly unusual, so these rumors are best taken with a grain of salt. Samsung has since issued an official statement denying that any such internal dispute occurred.

"Recent reports that Samsung's DS division has rejected certain customer requests are baseless and not true. We are in close communication with global customers to address industry needs," Samsung's spokesperson said.

Samsung is the world's largest manufacturer of semiconductor memory and one of the few companies with full-scale chip production capabilities. Like the rest of the industry, the South Korean tech giant is facing unprecedented demand from Big Tech and AI firms racing to build out massive new data center infrastructure.

Some memory manufacturers have already chosen to abandon the consumer market altogether, shifting exclusively toward higher-margin products like HBM and other advanced memory types. Meanwhile, Samsung and several competing firms have opted to raise prices on DRAM and NAND flash. As a result, some DDR5 kits now cost more than a PlayStation 5, and the situation is expected to worsen over the next few years.

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I have a split opinion on the RAM prices. On one end I think manufactures want to make hay while the sun is shining. The other side thinks that AI demand won't last long enough to justify ramping up production and potentially being stuck with lots of unsold inventory they might have to sell at a loss.

The reality is probably some mix of the two which is why short term agreements and selling memory at market rate prices are becoming as popular as they are.
 
"A Samsung subsidiary refusing to discount chip supplies for another division within the same corporate structure would be highly unusual"

You are fundamentally misunderstanding how subsidiaries operate. Each is responsible for their own revenues and profits (just like any business) and will act accordingly. Sure, there is a discount for other Samsung divisions compared to other customers, but ignoring the market pricing of the product you make would shift the profitability of your sub to the other sub. That would make the supplier sub look worse and reduce their incentive pay for their management. Depending on the legal structure involved ignoring market pricing could be violating their fiduciary responsibility to their employees, creditors, and shareholders.
 
Still waiting for AI to make my life better. So far it's only making it worse!
Even type assist autocorrect screws things up more than it helps me.. If we can't get that to be 'mostly right', what are the odds of useful robo-maids, mostly non lethal self driving cars, and etc in the next 5-10 years?

With the billions and trillions of circular finance cahoots between the 'magnificent (lol) seven', the US job market external to AI in the dumps, $38 trillion sovereign debt, inflation and wage stagnation to the point that even the bare essentials are unreachable to so many - I cringe thinking of the pain our country and world are going to be experiencing soon when all the hype is exposed.
 
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