Seoul [South Korea], August 25 (ANI): Samsung Electronics and SK hynix gained further "bargaining power" in the artificial intelligence supply chain as rising memory costs fed into prices for Nvidia-based server systems, according to a news report by Korea Herald.
Server manufacturers notified major data center customers, including Microsoft, Google, and Oracle, that prices for Nvidia-based AI systems would rise by more than 15 per cent in many cases for shipments starting in early 2027. The price adjustments affected systems built on Nvidia's next-generation Vera Rubin and current Grace Blackwell platforms, with the exact scale of the increase varying by chip generation and memory configuration.
Memory components emerged as a primary driver of the cost pressure. Nvidia's AI accelerators depended on high-bandwidth memory (HBM), while AI data centers consumed substantial volumes of conventional server DRAM. Supply remained tight as cloud service providers expanded computing capacity and secured memory supplies through longer-term contracts, placing a small group of memory manufacturers in a stronger negotiating position.
Citing data from Counterpoint Research, the report placed SK hynix at 58 per cent of global HBM revenue in the first quarter. Samsung led the broader DRAM market in the second quarter with a 39 per cent share, with both South Korean chipmakers jointly accounting for 65 per cent of global revenue.
SK hynix established an early lead in HBM tied directly to AI accelerators, whereas Samsung maintained a larger footprint in conventional DRAM while expanding its share in advanced HBM products. Counterpoint reported that the bulk of first-quarter HBM revenue stemmed from HBM3E, with HBM4 shipments expected to become more meaningful in the second half of the year.
Cost pressures also extended across the wider DRAM sector. The report mentioned that TrendForce projected server DRAM contract prices to rise another 13 to 18 per cent in the third quarter compared to the prior quarter, driven by continuous AI-related absorption of manufacturing capacity.
As per the report, South Korean investment bank and financial services company, Hana Securities noted that the reported price increases for Nvidia-based servers put renewed attention on memory suppliers, identifying Samsung and SK hynix as prime beneficiaries amid sustained infrastructure spending projected through 2027.
The demand for high-performance memory remained diversified, as companies including Amazon, Microsoft, Google, and Meta developed proprietary AI processors that also required advanced DRAM and HBM.
However, climbing component prices elevated overall infrastructure expenses. Citing a report by The Information, the Korea Herald indicated that server suppliers warned customers of price hikes of approximately 17 per cent on major Nvidia-based systems, estimating that chip-system costs for a 1-gigawatt data center could rise by at least USD 5 billion.
Commenting on the long-term impact on technology firms, Shin Joong-ho, head of research at LS Securities, highlighted the constraints of rising component expenses.
"Big Tech can absorb higher costs for a while, but there is a limit to how far infrastructure spending can rise without affecting returns," the news report quoted Shin.
"If memory inflation keeps pushing up Nvidia system prices, companies may have to reassess the expected returns on new AI data center projects," he added. (ANI)
Samsung, SK Hynix stand to benefit as as Nvidia AI server costs surge
