Price increase, you need to pay extra! The three major storage giants plan to launch a "short-term contract + post-settlement" model

The global memory chip market is undergoing a significant transformation in pricing rules.

According to ETNews on Friday, memory giants such as Samsung, SK Hynix, and Micron are implementing a new contract model that not only significantly shortens contract terms to quarterly or even monthly but also introduces "post-settlement" clauses—meaning that even after delivery is completed, customers must make additional payments based on market prices. This change primarily targets large technology companies in North America.

This new type of contract allows suppliers to adjust payments based on market prices after delivery is completed. For example, if the DRAM contract price is 100 won, and the market price doubles a year later, the customer must pay an additional 100 won difference. This marks a fundamental shift in the memory industry from a traditional fixed-price model to a dynamic pricing mechanism.

Industry insiders expect that these supplier-favorable contract terms will last at least until the second half of 2026, as the price increase of memory chips is expected to continue. Even tech giants like Apple, which have significant purchasing power, cannot avoid the impact, as there is still room for further price increases in their memory procurement after the first half of 2026. Supply tightness and price fluctuations are reshaping the pricing landscape of the memory market, with the buyer's market completely turning into a seller's market.

Fundamental Shift in Pricing Mechanism and Significant Shortening of Contract Terms

The traditional pricing model for memory products is being disrupted. ETNews points out that prices for memory products like DRAM and NAND were typically set at the beginning of supply contracts, and even if market conditions changed, the price adjustment was usually limited to around ±10% during quarterly negotiations.

However, the new contracts introduce "post-settlement" clauses, allowing payments to be adjusted based on market prices even after delivery is completed, effectively enabling suppliers to capture the benefits of price increases. This mechanism completely breaks the certainty of fixed-price contracts and shifts market risk entirely to the buyer.

In addition to changes in payment methods, contract terms are also significantly shortening. ETNews states that although memory buyers are seeking two-year or longer contracts to ensure stable supply for expanding AI infrastructure, many contracts have been shortened to quarterly or even monthly terms due to limited inventory and price fluctuations.

Industry insiders revealed to ETNews that these supplier-favorable agreements may last at least until the second half of this year, as memory price growth is expected to remain strong. The shortening of contract terms allows suppliers to adjust prices more frequently based on market conditions, further strengthening their pricing dominance.

Even Tech Giants Are Not Immune

Even tech giants with significant purchasing power cannot escape this wave of price increases. ZDNet cites industry insiders stating that while Apple typically signs long-term memory supply agreements, the current memory shortage means that pricing is only locked in until the first half of 2026, leaving room for further price increases when launching the new flagship iPhone 18 later this year.

According to ZDNet, Samsung and SK Hynix raised the LPDDR prices for iPhone shipments in the first quarter, with Samsung's increase exceeding 80% quarter-on-quarter and SK Hynix's increase around 100%. This shows that even super buyers like Apple have lost their traditional bargaining power in the current supply-tight situation Under limited supply conditions, major storage manufacturers are tightening control measures. According to Nikkei Asia, Micron, SK Hynix, and Samsung are rigorously reviewing customer orders, requiring disclosure of end customers and order quantities to prevent hoarding or oversubscription from further disrupting the market.

This review mechanism indicates that suppliers not only dominate in pricing but also have greater say in supply allocation, further consolidating the current seller's market landscape