Samsung is making a bold move in the memory business. The company is significantly increasing its DRAM production, with plans to raise output by nearly 20%. This shift shows how seriously Samsung takes meeting the growing needs of artificial intelligence systems, which rely heavily on fast, reliable memory.
At the centre of this plan is Samsung’s Pyeongtaek Plant 4. New funding and upgraded equipment are being directed there to boost wafer production. The goal is simple: to produce more memory chips for AI servers that are being ordered at a rapid pace.
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Samsung expands DRAM output to meet AI demand.
Samsung is reworking Pyeongtaek Plant 4 to reach a monthly output of about 120,000 wafers. This increase is aimed straight at AI workloads, which consume far more memory than traditional computing tasks.
The primary focus is on HBM4, or High Bandwidth Memory, built using sixth-generation 10-nanometer-class technology, known internally at Samsung as 1c DRAM. This type of memory is a key part of modern AI servers and accelerators used by companies like NVIDIA and AMD.
Design changes improve HBM approval chances
This expansion is not just about producing more chips. Samsung has also revised its 1c DRAM design. These changes were made to meet NVIDIA’s strict qualification rules for HBM memory. Passing these checks is critical for winning large AI contracts.
Industry observers say the resulting capacity boost of around 18-20% is a thoughtful response to a new memory upturn. Prices for server-grade DRAM have already doubled since 2025, and Samsung wants to secure supply deals before rivals catch up.
Foundry operations run at full speed
Samsung’s S5 foundry is also playing a key role. It is operating at full capacity to produce the base dies used in advanced memory stacks. This heavy workload shows how tightly memory and chip production are now linked in the AI supply chain.
The impact goes beyond data centres. The current focus on AI memory has tightened supply in other areas, including smartphones, where RAM availability has already become uneven.
Mobile devices set to gain faster memory
Samsung plans to bring the same 1c DRAM process to its Hwaseong facilities for mobile memory. This move will likely show up in future phones, most likely the Galaxy S27 lineup.
For users, this means faster RAM with lower power use. That combination helps phones run more smoothly while also improving battery life, which matters more than raw speed for most people.
Memory prices unlikely to fall
Even with higher production, lower prices are not expected. Samsung’s goal is to keep memory available, not cheap. At best, the added supply may slow further price jumps, especially in the server market.
Consumers may still see slightly higher costs, but that increase would come with better performance and efficiency.
Samsung absorbs costs for upcoming phones
The Galaxy S26 launch is expected this month. Reports suggest Samsung’s mobile team may absorb higher RAM costs rather than pass them on to buyers.
The broader picture remains clear. The current RAM shortage is partly shaped by strategy. Major players like Samsung and Micron are investing more in high-margin HBM products. AI memory delivers higher returns, and companies are following the money.
Samsung’s aggressive DRAM push shows where the market is heading. AI is driving memory decisions, and Samsung wants to stay in front as demand continues to climb.
