Yangtze Memory Technologies Co (YMTC) and other major memory chip manufacturers, including US peers Micron Technology and Sandisk, are expected to raise their prices next month amid the sector's reduced production and strong demand from the artificial intelligence (AI) market.

These memory chipmakers have already informed their distributors, including those in mainland China, of the price increase, according to various industry publications.

ZhiTai, a retail brand of solid-state drives (SSDs) and storage cards that use core memory from YMTC, already advised distributors that prices would rise at least 10 per cent from April, according to reports from TMTPost, ChinaFlashMarket and MyDrivers.

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Following flash storage giant Sandisk's announcement of a price hike "in excess of 10 per cent" from April 1, a report by Taiwan's Digitimes this week suggested that YMTC, Micron, Samsung Electronics and SK Hynix would follow suit.

These initiatives indicate that NAND Flash memory prices are set to rebound this year.

Micron, Samsung and SK Hynix had resumed memory chip production cuts in late 2024 to curb NAND price declines. That move helped stabilise supply-demand balance, according to a report by Taiwan's TechNews.

Sandisk's price hike stems from the rise in costs owing to recent tariffs imposed by US President Donald Trump, as well as its confidence in market demand, according to TechNews, which cited an email from Sandisk chief revenue officer Jerald Kagele.

Micron, the largest US maker of memory chips, had told its clients earlier this month that an average price increase of 11 per cent would be charged for new orders, according to Digitimes.

A bird's-eye view of Micron Technology's headquarters and main production facility in Boise, Idaho. Photo: Shutterstock alt=A bird's-eye view of Micron Technology's headquarters and main production facility in Boise, Idaho. Photo: Shutterstock>

YMTC, Micron and Sandisk did not immediately respond to a request for comment on Wednesday.

Factors that contributed to the memory chip sector's price hike include output reduction and the rapid adoption of AI applications, which require massive use of these chips, according to Arisa Liu, research fellow and chief director of Taiwan Industry Economics Services.

Liu said that suppliers of NAND Flash memory, used in storage cards and SSDs, cut production to stabilise prices "in response to the market downturn over a certain period". She added that incidents like a power outage at Micron's NAND Flash factory in Singapore in January contributed to the sector's limited output.

"With the rapid development of AI applications, the demand for NAND Flash has increased significantly," she said.

"Additionally, China's large-scale replacement and subsidy policies have led to a recovery in the demand for smartphones and personal computers, which also impacts the demand for NAND Flash."

To stimulate domestic spending on electronic devices and home appliances, Beijing revamped its consumer products trade-in programme.

A 15 per cent subsidy, for example, is provided for purchases of digital products - including smartphones, tablets and smartwatches - that cost under 6,000 yuan (US$830).

South Korean memory chip giants Samsung and SK Hynix have also been upgrading old NAND Flash production lines since late last year. That also had an impact on reducing the memory chip sector's production volume, according to local media ETNews.

Pua Khein-seng, inventor of the USB flash drive and chief executive of Taiwan-based Phison Electronics, revealed earlier this month at an industry meeting that Micron did not deliver enough goods to cover its December order, according to a report by TMTPost.

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